Tax blow for high earners

Former_MSE_Guy

This thread is to discuss the following news story:

Tax blow for high earners

Money_Grabber13579

I'm sure MP's have it rigged though so that they come in just below the new 50% band! :mad:

Why can we not get a proper government, who doesn't think the answer to everything is borrowing, and then as a result think, Oh, there's something that needs a tax slapped on it! As David Cameron says, when a thing gets to 10 year old, and is only puffing out hot air, it's quite rightly fit for the knackers yard! :rotfl: (I liked that one!)

ThinkingOfLinking

A lot of people with an income of that size aren't "earning" it anyway.

manutd99

Flickering_Ember wrote: »

A lot of people with an income of that size aren't "earning" it anyway.

what do you mean?

Also why is a tax blow. Dont you think people who earn £100,00 or even £150,000 earn enough.

Think of all those either out of work or on minimum wage

mrkbrrws

I'm not sure if it's what FE meant, but I would think many people with incomes over £150,000 are not earning a salary but receiving dividends from their company.

According to http://www.hmrc.gov.uk/budget2009/bn01.pdf the tax on dividends is also increasing:-

Still 0% up to higher rate limit
Still 25% between higher rate and £150,000
New 36.111111111% over £150,000 (is this simplification?) :rotfl:

(all based on the dividend actually received)

trevormax

manutd99 wrote: »

what do you mean?

Also why is a tax blow. Dont you think people who earn £100,00 or even £150,000 earn enough.

Think of all those either out of work or on minimum wage

Would you be saying this if it where you having to pay 45% on your income to fund the out of work?

And do these people get more for the amount of tax they have to pay compared to someone who is a basic rate tax payer or even people who dont work and dont contribute to society? No, they do not, they still have the same useless criminal system, the same NHS service, the same state schools, everything is the same so I can see how they would be p**sed off at having to pay more.

I'm not affected by the increase in rates (not directly anyway) but to me it just doesn't seem fair that in this country the more you earn the more the govt will take from you.

manutd99

end of the day they get more money in their pocket. Have a better house, have better cars etc

i wouldnt mind paying extra tax if i earnt that much. Also its not only the out of work their paying for. Its the whole system ie NHS, Police, Schools etc.

At least we get free NHS in this country unlilke other countries where they have to pay for their treatment.
Even schools, we do get free education where most other countries have to pay for education.

I feel as a whole the system is much better in this country compared to others.

Obviously the people managing (government) and how its run could be better

Im not trying to say the government is brilliant and agree they are useless but overall i would say the system is much better. So where else to get the extra money - one way - people who earn more

Pennywise

manutd99 wrote: »

i wouldnt mind paying extra tax if i earnt that much.

That's what everyone says until it affects them!

It's quite funny really. There's been many a time when I've sat with a new client and talked about their tax "morality" - almost always they say that they're happy to pay "the right amount of tax" if they're earning the money. Then a few years later when they are earning plenty of money, they'll do almost anything to reduce their tax bill! The crunch moment comes when it's time to write the cheque with a few noughts on it - it's painful. It's very easy to be an armchair philosopher when it doesn't affect you, but when the time comes to write the cheque, it brings a tear to the eye.

There's a lot to be said for indirect taxes - at least then you don't "feel" the pain quite so much and there's far less scope for tax avoidance planning.

carlislelass

why shouldn`t really high earners pay more

trevormax

carlislelass wrote: »

why shouldn`t really high earners pay more

why should they?

They already pay more than basic rate taxpayers by paying at 40%. If someone earned £150k in 07-08 they will have paid £50,626 in tax. Thats the same as 13 people would pay on £25k a year and more than most people EARN in a tax year. So why should they be asked to fork out another few grand just because they get paid more?

trevormax

manutd99 wrote: »

i wouldnt mind paying extra tax if i earnt that much. Also its not only the out of work their paying for. Its the whole system ie NHS, Police, Schools etc.

but do they benefit from having to pay extra? Do they get better treatment at the hospital? do their kids get a better education at the state school than other people's kids? do the police go that extra yard and give these people more protection from burglars and other criminals? No. I pay about £4k a year in tax and NI and I am entitled to exactly the same stuff these people get, but now the govt wants them to pay and extra few thousand a year because they can afford it.

What if you and another person had been caught speeding, doing the exact same speed on the same road seconds between the two of you. What if you were on £50k a year and the other guy was on £10k. Would you be happy if you were told your fine was £500 and the other guy was £100 because you get paid more?

I think not.