Higher tax rate to hit 750,000 more people, says IFS

Higher tax rate to hit 750,000 more people, says IFS

www.bbc.co.uk

Three-quarters of a million more people are set to become higher-rate taxpayers in April, according to a leading economic research body.

About 750,000 people will start paying the higher 40% income tax rate on their earnings from 5 April, says the Institute for Fiscal Studies (IFS).

(visit the link for the full news article)




Mod Edit: Review This Link: Instructions for the Breaking News Forums: Copy The Exact Headline

I just wanted to 'get in first' on this because I just want to make this clear to all those who will scream and shout about it -- possibly not really fully understanding it !!

There is a change to the UPPER threshold, of £37500 which is that it is being reduced to £35001.
ie you will pay 40% FROM £35001 BUT the Personal Allowance is being INCREASED to £7545 which means ........
People on lower incomes who do not reach the higher threshold are BETTER off !!!

I think in a fairer society the higher earners (including Me) should pay more !!

I wait for the current Crop of Protestors to start complaining about the new changes in tax...

Regards

PDUK

www.bbc.co.uk
(visit the link for the full news article)

reply to post by PurpleDog UK


The widest shoulders baring the largest wieght? In terms of just this policy , I agree with the governments position whole heartedly. Appart from anything else, taxing people who earn less than 40k a year into the ground is pretty much a major difficulty for this generation, with young families basicaly left adrift on a sea of debt, not through deliberate fault but through believing the lie which has existed up till now , that the government will support your every move, as long as you work hard.
They havent supported people sensibly or sustainably for decades, and I hope (although I do not expect) that this measure will go some way to offseting the appalling cuts to jobs in all sectors imposed by the government, and the inflationary issues facing our ecconomy these days. To be honest, the time for this measure, in terms of when it could have been most effective, would have been right slap bang in the middle of the first decade of the new millenium. If this had been bought in then, while things were stable, alot of people could have actualy saved money rather than getting loans and stacking up massive amounts of debt. A person who can save a little money each month, doesnt rely on debit and credit for thier existance, and avoiding dependance on these is a must if the state of the nations finances are ever to improve.
One thing I do worry about however, is the way this tax bracket change will be funded. Idealy speaking the government should seek to recoup any money they might loose by taxing the people who really caused the issues around the world, and those would be the high flying professional gamblers who get trusted with our hard earned investment cash. After all, it wouldnt be fair to tax the captians of genuine industry (like metal working companies, building firms and so on) when its the sectors with the highest paid and least understandable pay checks who actualy caused the damage, and can better afford to pay for it.
Also, I should hope that the government start thinking hard about dissolving the management contracts for thier HMRC buildings, which are currently owned by the biggest tax evaders in Britain , who charge HMRC through the nose to run and supply thier buildings, and then avoid the tax on thier profits via crafty accountancy tricks and offshore accounting. If real improvements are to be made to the lot of the average and low paid workers in society , then what can be done to recoup money from non citizen sources (corperate sources i.e.) should be done, before dumping the responsibility for paying for this higher tax rate, on properly paid, but none the less hardworking honest folks.

I thought I would chime in as well before the do gooders and career anti-Tory crowd jump in..

I am one of those affected by this tax rise, In know we all have a part to play and depsite now being worse off I am not about to take to the streets to bitch and whine about it like a spoilt brat. I also like to see the lower threshold increased which will benefit those who, in all honesty, can't afford to be taxed.

So much for claims of "class war" that has been bandied about. Time to tighten that belt, me thinks.

reply to post by TrueBrit


TrueBrit

Firstly thankyou for your reply............ I was expecting there to be a whole 'Barrage' of people complaining about 'higher taxes' but NO, not much at all....BUT

YOU make some very good points in your reply and I tend to agree with you...

I want a fairer society and how we get there is another question...

Regards

PDUK

reply to post by stumason


Stumason

I posted this asap because I thought , like you the career minded anti conservative / coalition is a bad thing blah blah brigade would Hijack the headline and try to use it in the wrong way..... I hate that........

Glad to see that maybe reasonable sense prevails here !!
Regards

PDUK

reply to post by PurpleDog UK


Yeah, those with the nack could try to spin this one. But as it stands, us "rich" are paying our way too and the "poor" are getting soem breathing space.

reply to post by PurpleDog UK


Starred!

Yes I am happy to pay a bit extra. I can tighten my belt and by cheaper. Many cannot. I am not going to shriek about this.

Originally posted by PurpleDog UK


I just wanted to 'get in first' on this because I just want to make this clear to all those who will scream and shout about it -- possibly not really fully understanding it !!

There is a change to the UPPER threshold, of £37500 which is that it is being reduced to £35001.
ie you will pay 40% FROM £35001 BUT the Personal Allowance is being INCREASED to £7545 which means ........
People on lower incomes who do not reach the higher threshold are BETTER off !!!

I think in a fairer society the higher earners (including Me) should pay more !!

I wait for the current Crop of Protestors to start complaining about the new changes in tax...

Regards

PDUK

www.bbc.co.uk
(visit the link for the full news article)

I wont complain as i dont earn this much to be affected but i DONT think its fair that people who earn this much and have worked extremely hard to get to where they are have to pay more. Some of these people are genuine hard working people who have worked their whole lives to get to this salary for it to be taken away. I think its an unfair system, while those who dont really try hard or care get off with paying the normal.

Its such a hard area to figure out but i think its unfair.

Maybe a super tax on all the banks would save this mess, or selling off the Bank of Scotland, Lloyds TSB and Royal Bank of Scotland would generate some money for the UK.

reply to post by jrmcleod


Before we go to supertaxes why doesn't HMRC just be more efficient on collecting taxes? HMRC is a complete shambles!

Originally posted by jrmcleod


Maybe a super tax on all the banks would save this mess, or selling off the Bank of Scotland, Lloyds TSB and Royal Bank of Scotland would generate some money for the UK.

A super tax seems to me to be a better option, with threats of legal action should a bank pull out of Britain just to avoid it, on the grounds that all the banks screwed us some how, and they owe us a break.
If we sold RBS or Lloyds TSB at this point, then we would get buttkiss for them in comparison to what they owe us. Certainly where the sell off is concerned, we must wait as long as possible and allow the banks we own to accrue more value before we sell them, if we are to recoup anything from thier aquisition .

reply to post by jrmcleod


jrmcleod

When you suggest a 'super Tax' then what exactly does that mean ?

Also when you say that this 40% tax band is unfair on those at that level then does it not strike you that at 'some' level someone has too pay for all the stuff, benefits, services, healthcare, etc etc etc etc........
This is the point that alot of those whom complain seem to forget........

There's Nothing free in this life and it is down to the individual Ultimately to take responsibility for themselves and those around them..

Regards

PDUK