How middle class families pay 49% of income in taxes - The Telegraph

Generali

Degenerate wrote: »

I've been a higher rate tax payer since my mid 20s. Am I middle class?

In pretty much any other country in the world they wouldn't care what class you are in IME. This is very much a petty British (English?) obsession.

carolt

I'd say the article seems pretty accurate.

As one of the middle class families described, we've definitely lost out over the last 13 years under Labour - principally by the removal of Married Couples Tax Allowance (which went the year we got married and had our first child - could really have done with it then! - ironically), and the removal of MIRAS, which would have made buying much cheaper even taking house price rises into account.

Plus council tax has gone up hugely in that time.

Plus any parents of older children have suddenly had to start paying for their kids' university education; or saving towards it for younger ones. That's a fair whack.

Those are the areas that I notice feeling poorer in - the actual tax rates have been harder to keep track of, as salaries change over time anyway.

lostinrates

Generali wrote: »

In pretty much any other country in the world they wouldn't care what class you are in IME. This is very much a petty British (English?) obsession.

And my experience is totally different to generali's!

I believe, for these sort of economic parameters its an income based thing. socially, I believe class only matters if you want it too. (I'm daughter of a higher tax rate paying working class man and a bottom ranking upper class/very upper middle class woman who most of her life earned abysmally!

IveSeenTheLight

marklv wrote: »

The problem with council tax is that it hits the London/South-East area disproportionately more, and also the people in the most expensive properties pay too little. It needs to be reformed to prevent these distortions.

I take it that you mean the people in London / South East Pay less.
As an example: -

http://www.aberdeenshire.gov.uk/counciltax/charges.asp

http://www.lambeth.gov.uk/Services/AdviceBenefits/CouncilTax/PropertyBandsAndCharges.htm

http://www.westminster.gov.uk/services/councilgovernmentanddemocracy/councils/counciltaxandfinance/bands/

http://www.camden.gov.uk/ccm/content/council-and-democracy/council-tax/council-tax--banding-2010-to-2011.en;jsessionid=7A9E176C16FF842A977900ED5583D94B

http://www.wandsworth.gov.uk/info/200028/council_tax/5/how_much_is_council_tax/2

http://www.lbhf.gov.uk/AZofServices/C/35763_Council_tax_figures.asp

zappahey

marklv wrote: »

Tory propaganda. However I do agree on stamp duty - even a modest house where I live now costs over £250k and to pay 3% stamp duty is outrageous,

I envy you and your 3%, it's 12% here. Flat rate.

kabayiri

marklv wrote: »

The problem with council tax is that it hits the London/South-East area disproportionately more, and also the people in the most expensive properties pay too little. It needs to be reformed to prevent these distortions.

Err, it was down for reform. In 2005/2006.

They built the systems for the rebanding exercise at a cost of millions.

But...someone in government got cold feet when it was about to be commissioned (the press got wind of it), so the whole project was mothballed.

The_White_Horse

they should increase the earning threshold for people who live in London and/or the Home Counties. someone earning 40k in London is NOT well off. Someone in Huddersfield may well be.

bootman

I read with interest a thread called how much can you save on money saving expert. I was astounded to read a person saying that they earned £350 a month and benefits topped them up to £1100 a month take home!!!!!! Meaning they could save a good whack amonth.

Whay am I working flat out 60 - 70 hours a week paying 40% getting nothing in handouts and not being much better off than that and being able to save less than them.

When I lose the plot completely I think I'm going to sell up, have the life of riley then come back having nothing left and have a restful life. I'm fed up scrimping when I'm supposed to be one of the better off!

IveSeenTheLight

bootman wrote: »

I read with interest a thread called how much can you save on money saving expert. I was astounded to read a person saying that they earned £350 a month and benefits topped them up to £1100 a month take home!!!!!! Meaning they could save a good whack amonth.

Whay am I working flat out 60 - 70 hours a week paying 40% getting nothing in handouts and not being much better off than that and being able to save less than them.

When I lose the plot completely I think I'm going to sell up, have the life of riley then come back having nothing left and have a restful life. I'm fed up scrimping when I'm supposed to be one of the better off!

While I completely understand and agree with what you are saying, you must be earning more than £1,100 take home per month if your paying 40% tax

PasturesNew

Council tax alone, for me, is usually 10% of takehome.