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

[soapbox]

????

we will indeed go round in circles, susie, but I really do think that understanding and comparing relaltive incomes is important in this kind of discussion. Because conversations shwo over and over again that a worrying number of people have very little clue how the majority of people in their country live.

WilfSell so you support a 83% top rate as in the 70s. Do you know/remember what that did to the economy?

Low tax rates have historically increased yields if you must know. But I suppose that is not as much fun as just slating the 'rich'.

I agree with KatieDD: "If £25k was enough to support a family then there wouldn't be the need for tax credits would there ? "

Tax credits are a recognition that families should, as a matter of gov't/social policy, be supported. So a single person or childless couple earning X should pay more in tax than a family with children. Not really about poverty as such - isn't that more the role of the minimum wage?

pointydog - I agree with you. Higher earners should pay more tax, I don't object on a personal level to the rise. I just think it is pointless and will not help the situation. The government needs to tackle the spending rather than the funding.

I do however maintain that £150 household income in London, where people have not been fortunate enough to get on the housing ladder early and have a small income, is not this huge amount that facilitates an extravagant lifestyle. And to whoever did a mortgage calculation a £450k mortgage gets you diddly squat.

A sesnilbe answer from gorilla.

What is the point of yiour comment, blonde? That people on £25k should be paid a lot more?

MummyGorilla - it would be much more sensible to give additional personal tax allowances for dependent children etc than the existing complex tax credits system

The fact is that we are in unprecedented economic conditions and the government is just trying everything it can

You can hardly blame them

What's the alternative - let the banks run themselves into the ground completely?

All those people who are saying "Can't wait until Labour's gone!" are INSANE - what exactly do you think Cameron is going to do? He's basically running around sobbing at the moment. Useless.

susie100, it wasn't the top rate of tax that ruined the economy; it was oil-price cartels hiking oil-prices, inflation/deflation and an impossibly high PBR (though less than today's evidently) with cripplingly high public sector wage demands.

Fark all to do with what the very VERY richest were paying in tax. Not least, as we all know, because the rich find ways of avoidance.

But, hey, thanks for patronising me anyway... [cocked-head smile emoticon]

and the tories don't exactly have a great tax record themselves do they

It's more a case of £25k should buy you a decent standard of living.
Paying people more will just inflate house prices and indeed most things, that's not the answer.

Unprecedented economic climate ???
You are having a laugh, I've seen this coming for the past 4 years and I have an A' Level in economics and ocassionally look at the financial times.
Gordon Brown took a massive gamble and lost after 9/11

For £25k tpo buy you a decent standard of living, house prices will have to fall dramatically. Lots of people have become, or are becoming, rather rich on property. Wouldn't bother me if they lost a few hundred thousand on their house.

Maybe that would be a good solution if we really can't afford to pay people any more.

Shame the banks didn't see it coming. Sheesh, you'd've thought them being the professionals 'n' all they would have spotted what an A level student could see.

25k buys you a reasonable standard of living in Somerset

And you can RENT

I saw an article about a women who was an allegedly 'typical' person having their house reposessed - a checkout clerk with a mortgage of 200k! Well erm ...

I couldn't agree with you more.
Do you not remember the headlines in 2001, average house prices to hit £200k by 2008 ?
I'm sorry but GB talked up the property market, allowed reckless borrowing and cheap credit so we've all been living the high life for 7 years on none existant money.
The bubble needs to burst so we can start again and clear up this mess.

oooh KatieDD

you need to ring Gordon Brown NOW and tell him your masterplan

The banks saw it coming a mile off, they just choose not to tell you otherwise you might be a little brassed off that you are now going to pay to bail out the mess that they allowed to happen.

I've dipped in and out of this thread and i have to say i really resent the fact some people believe high earners are greedy people. My dh earns just over 150k. He works away alot, working very long hours. He has an incredibly stressful job. We don't have staff! We live in a 'nice' terrace with no garden. Although it is a very expensive area so dh can be relatively near work. We have one car. He contributes almost half his salary to tax and ni. Some people don't seem to realise that the people on low incomes although tax payers get back benefits in tax credits etc so aren't really contributing much. It's people like my dh who pay for the nhs etc but yet you say he doesn't want to pay more tax but expects to benefit from the services. That's a bit of a joke when he's contributed 70k to the government in the last tax year isn't it? Why do some people resent high earners so much? When i was younger i worked for min wage so know what it's like to be skint but i also know what my dh does and i believe he deserves every penny he earns.

Don't patronise me, I shall be voting with my feet if this country doesn't sort itself out asap, as will many other higher rate tax payers.

kDD, I can tell you're joshing now

I don't believe ANYONE "deserves every penny they earn"

unless they are early VERY FEW PENNIES

• I meant re your banks post, not denying you might move country.

oh KDD is THAT your masterplan?

buggering off?

It's certainly Gordon Browns, he knows he won't have to face the consequences of his actions.