Income tax- Burnam

[Niftywigglesheep899]

Does anyone know if Andy Burnam is planning to raise income tax , so we have less money coming in each month?

Im quite concerned - stretched as it is and can’t cope with anymore.

I don’t know but I hope he gets the welfare bill down. There are too many healthy young people receiving benefits when they should be working and it is crippling the UK.

Tax in the UK is at an all-time high. Let hope the new Chancellor increases personal allowances.

I hope for that too.

Its the opposite! He us saying that he is going to raise the threshold of paying income tax higher. Currently, nobody pays any tax below £12,500. He is talking about raising this which means everyone will be better off and proportionately those on lower incomes will feel it more. Its been stuck there for nearly 5 years so it hasn't risen with inflation. So you will be better off if he does it.

If he does that I might have to like him.

Depends on which tax bracket you currently fall into.

If you're a basic rate tax payer only then I suspect you'll be fine

It seems the fairest way to do it. Also good for the economy, as if you put money in the pockets of everybody, those on a lower income will spend it and put it into the econmy. Richer people tend to save it.

I hope he also raises the middle bracket a bit and get rid of the ridiculous situation around child benefit and make the cut off be on household income, not individual.

That's crying out to be done, agree.

Would that be like joint me and my husbands salaries together? So 2 people can earn under 100k each and get free childcare but another family has one over 100k and the other on a lower salary and can’t get it? Is that what that would solve

Yes. It makes no sense.

No it isn’t. Basic rate was 33% in the early 70s with 9% NI on top. The top rate was 90%.

It's all speculation at the moment, nothing at all is announced and fact.

With a new chancellor who recently resigned as defence secretary saying defence needs a lot more money? It will be a lot harder to find the tens of billions extra for the military that Healey said was needed if the personal allowance is raised.

That’s not true. Higher earners receive no personal allowance and pay income tax on every single pound they earn. If he puts the additional rate up to 50% and limits tax relief on pension contributions then pretty much all the higher earners I know will either move abroad or stay here and work less. It’s such a naive way to structure tax.

It depends what that poster meant by tax at an all time high.

Tax as a percentage of GDP is close to record levels.
The average earner is not paying anything like record levels.

He has said that he won’t raise income tax, vat or employee NICs.

Tax is the highest it’s been since the 1940s. Still at least we’re getting great public services 😭

Well I hope they don't do more borrowing. It's not fair to borrow huge amounts of debt that our DC and DGC will have to repay.

@LavenderOregano

Tax is the highest it’s been since the 1940s
What do you mean by this? (It isn't by most people's definition)

Tax take out of GDP

I hadn't realised that it tapers after £100k. OP that means about 6% of the working population won't get the benefit from it so if you earn over £100k it will start to effect you and only 3% will get nothing.

@ChloeHH ’then pretty much all the higher earners I know will either move abroad’

Where are they all going to move to? What about their kids education? What about their partners being able to find work in a foreign country?
Emigrating is a lot harder than it sounds if it’s done for financial reasons.

Does anyone know if Andy Burnam is planning to raise income tax?

Well it’s not been publicly released yet but I’m sure he might have told his mate who might be on MN who will share the details.

I work with consultant doctors and they are pretty certain introducing 50% tax rate will lead to strikes. It seems reasonably paid but not super rich which we would define as middle.class.are going to be screwed and a lot of these people are , yes, the man and woman in the street which Burnham wants to feel a warm and fuzzy optimism?

Increases in CGT are going to hit a lot of prudent savers where normal interest accounts can't beat inflation in reality.

Well actually it is, while income tax is lower than it was in the 70s as you state, the overall tax burden, which takes into account tax paid on everything from income tax to vat to insurance tax / stamp duty etc is at its highest level since the end of the second world war