Tax blow for high earners

edited 30 November -1 at 1:00AM in Cutting Tax
16 replies 1.8K views
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  • DCoddDCodd Forumite
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    The Government have taken the easy way out again!! Just for the record, I earn less than 20% of the £150k we are talking about here.

    I can see both sides of the argument, if I suddenly earnt over £150k, being taxed at 50% would be a breeze however if, as most people do, you live up to your means then an extra 10% tax hike could be catasrophic for the first 10 - 15% of people above that limit. they may have large financial commitments (school/Uni fees etc) and from that level of earnings it could well be a long way to fall for them.

    Remove the tax havens, if your earn your fortune in the UK then be taxed in the UK!! It would raise more than the measley £7 Billion the 50% scheme will raise:mad:
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  • silvercarsilvercar Forumite, Board Guide
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    They already pay three times over.

    Once the same as any lower paid earner, then they pay a higher percentage of their earnings, then they can and often do opt out of the NHS/ state schools and go private so the state funded system benefits by not having to fund their needs.
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  • bootmanbootman Forumite
    2K Posts
    I've been Money Tipped!
    The news reported that more tax evasion will occur so less taxes collected overall. So this hike will only affect regular people.

    If you are PAYE you have no hope.

    Why cant they find a way to close the loopholes where people who earn millions pay less in tax than someone say on £150K.

    That's where it's all wrong, but it's the regular Joe public that always takes the hit.

    My friend was telling me that he now owns 9 properties and is still snapping them up. He used to be an accountant and said he pays virtually no tax but makes a fortune from all these rentals.
  • Debt_Free_ChickDebt_Free_Chick Forumite
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    Higher earners already "pay more". 20% of £200k is clearly more than 20% of £30k.

    What the Government has done is to tax them again - at a higher rate.

    My own view is that this is a deliberate ploy simply to placate those who feel that the "greedy bankers" and others like them (?) should be "made to pay" for the current economic situation.

    If that's not enough, they have also singled them out for unequal treatment over the way in which their pension contributions are treated.

    I can't blame the "high earners" if they feel they've been victimised - they've certainly been the focus of a lot of Civil Servants' time and attention in the budget planning process.

    The Government may well have targetted all those who signed up to "Noo-Labour" during the past ten years and could well find a distinct lack of support at the next Election.
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  • manutd99manutd99 Forumite
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    trevormax wrote: »
    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? .



    Why do you think they should extra treatment for? Just because they pay extra tax. Don’t think so.


    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? .


    That has nothing to do with it. Why is driving fines linked to tax? It’s the same other way around. 50k guy pay x amount for a pint of milk and 10k pays the same. Why is it not cheaper for the guy earning 10K?

    As I said in my earlier end of the day, they get more money. End of story
    A guy earning £150,000, you said would 50k tax. This leaves a total a 100k. Another guy earning 16,000 would get a total of 12,000.
    Which would you have? Obviously100K.

    Does the earning 100K (after tax) work longer hours? No. Worker harder? I doubt it Has he got a top of the range car? Yes. Nice house? Yes. If he feels he has no money left after 100K (which I doubt). Buy a cheaper car. Just spend less

    Does the guy on 12k have a top of the range car? No. Nice House? Probably not
    Most of the people earning low amounts are struggling very much and 150k moans we don’t have more money to spend. Why does he need that much anyway? All he is doing is helping the less fortunate.
  • mcgroamcgroa Forumite
    3 Posts
    It wont work. Majority of the 300,000 people caught up will avoid however possible.
    What everyone should stop being smug about is the precendents it sets. There is now a level where an individual loses their tax allowance. And there is also now a level where tax is applied to pension contributions of both the employee and employer contribs. I would fully expect those to be pushed lower and lower by whomever is in government to try and plug the MASSIVE hole in our economy/budget. Those elements are for all earning people a total disaster.

    Interestingly there is an article from cfe.org.uk last april about how to be fiscally neutral you need to earn 30K for most of your working life. Most people earn less than that - so high rate tax payers already pay lions share.


    Anyway - I dont blame bankers. Didnt see man in street complaining about his big house rising in value, his shiny new car bought on the tic. Same one who was produly discussing all the free balance transfers he had on credit cards. Also didnt see this self congratulatory goverment refusing to take credit for the boom years that they apparently presided over.

    Meanwhile they get biggest spending allowances, pay rises above inflation, and the most generous pension of all of us. Rubbish.
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