What do you think of the 5% tax hike for those earning more than £150k - good or bad?

[soapbox]

????

One of our friends is a radio presenter, he'd be in the £150k bracket.
His children go to state school, I doubt he has private health care.
He does have an ex wife and house in St Alban's to pay for as well as a new life with his new wife to fund.
You would never hear him complain about his lot, but I know for a fact he lived on our living room floor for 5 years whilst he worked for free at radio stations and worked in bars so he didn't claim dole. That was a massive gamble, had he not got a break he could have been 35 with no career. He also probably won't be a presenter for 20 years, maybe his career will be shorter than my Dh's, who knows.
He certainly is not a flash harry with 6 cars and a big house and 2 snotty kids at an expensive school.

387 public sector employees earning over £150,000

I think arguing that £150k isn't enough to fund a comparitively luxurious lifestyle is spurious really. It's like me saying we're worse off since we moved house. It feels like we are a bit in terms of disposable income because our mortgage is about 3x higher than our rent was. But we have a house! That we love and chose to buy. Many many many people don't have enough money to get a house and we're extremely lucky. I can see how people use whatever money they have so that their cost of living goes up but I think that's not a reason to sympathise with their tax bill. They're lucky because they have jobs that bring great financial reward and choice. A bit more tax is a small price to pay and if it's really that hard to bear they could always move to Jersey.

Pointless - so few people earn that, they will not get much revenue from the change in tax, around £2-3bn they reckon.

I think the view that everyone who earns this much have accountants who can tax evade for them quite laughable. Most people are taxed through PAYE and it is impossible to be at all tax efficient this way.

Well said TheGreatScootini! I have a husband who works for the NHS! He works long hours and earns over £150. His training was nearly 15 years. He saves lives. We are not super rich. We line in a house worth about £450K. We also have huge outgoings and on the downside my DD rarely sees Daddy as generally his patients come first. He is not a money grabbing person. He had his car stolen a few months ago, he now drives a car under £10,000. He doesn't get any fat cat bonus's as he would if he worked in the city. He just saves lives. For him its not about the money!

I don't think an income of £150k makes one terribly rich does it? If one was sensible it would buy you a £350k house, which in London terms isn't exactly living in the lap of luxury is it?

But don't you choose to have huge outgoings, shellye?

I do (does that make me brave?)

In london, honestly, it is not in fat cat territory. Live in a 2 bed flat a childcare is so expensive can't afford a house.

I don't mind paying more tax as I appreciate I eanr more than the vast majority of the population but I do hate the whole' they got us into this mess, must all be bankers, must all live in huge houses and have expensive cars' clap trap that gets wheeled out.

I also think it is cheap gimmick that makes not one jot of difference as the amounts are a drop in the ocean.

Tax and spend is a disastrous economic policy and Gordon has final shown his true colours!

why arent they chasing non-doms? I read if they paid the tax due it would add up to 32 billion. Thats a nice tidy sum.

I think these new measures are stupid and terrifying. Darling is DOUBLING our national debt!

It feels soooooooo wrong. The money he is predicting he will bring in with the VAT cut and the increased tax and NI contributions, is nowhere near the amount he's borrowing.

WE have 1 luxury. We send DD to private school.The state schools in this area are not good. We do not have private health care.

Another labour F**K UP - how much is this country now in debt...
5% will become 10% to pay for it - and all tax bands will go up

Gordon would have been better reducing VAT more and reducing VAT on Fuel, in fact reduce to 0%, thus benefiting all people - get people to feel they have more in their pocket and they will spend more!

a family on £150k will feel the reduction in their income and will spend less - they will also bear in mind thet they face future higher taxes and plan/spend accordingly

time bomb....and we will all pay for it

Because the non doms come to the UK and invest their money, creating jobs, take that away and they will spend their money elsewhere.

Well over 150k puts you in the top 1% of earners, soaps, so yes, that's definitely edging towards rich! I thought sensible mortgages were about 3 or 3.5 times income? That's 450- 525k without any previous equity or income from partner/spouse taken into account. I think even in Londan that would be pretty ample.

It's in all our hands, don't spend any more money and don't vote for this next year.
I have £50k of redundancy money sat in the bank, my kitchen is falling apart, it's killing me but if I can do it, so can you

they should still pay tax. That 32 billion would fund a fuck load of hospitals and teachers.

And those teachers and hospitals will be in another country if the UK isn't seen to be tax attractive, bigger picture.

Soapy

I agree, it is not a mad amount of money.

As a faimily we havn't been "hit" by the credit crunch yet - BUT are we spending? are we hell!! - we have only recently put on heating on and even then it is not on every day. We have tightened our belts weather we "needed" too or not and with policies like this we will continue to live this way.

needmorecoffee - non doms do pay tax
they pay tax on the money they earn in the UK

Im pretty sure being able to buy a house in London on a "sensible" mortgage is the definition of rich, isn't it?

Agree with Sonnet. We have stopped spending too. My husband employs 2 people but may reduce to 1. Our heating is off too. The CC hits everyone.

tbh, I really really don't understand how people can feel badly off on over 150k unless they have chosen an extremely affluent lifestyle. Which is absolutely fine. But is their choice. Just because they spend all their dosh doesn't mean they are on a low income!