Emergency Budget: tax cuts for low and middle income earners

Former_MSE_Guy

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Emergency Budget: tax cuts for low and middle income earners

blued

From next April, taxpayers will also pay an additional one percentage point in national insurance, which will cost someone earning £30,000 a year approximately £250. This was announced last year by the previous Labour administration.

I thought they were scrapping this altogether?

BoGoF

Despite Mr Cameron more or less saying so in the TV debates he then decided not to increase the employers contributions but left the increase to the employees contributions.

Captain_Moonshine

As usual, the lowest paid get hit the most. The rise in basic allowance will be almost wiped out by the increase in National Insurance, and the remainder will be taken up by the VAT increase.

I thought the Tories were opposed to Labour's increase in N.I. It seems they were only opposed to the employers having to pay more. Surprise, surprise! :mad:

blued

Try the BBC Budget Calculator

I played about with various salaries and unless you are on more than £40k you will be better off.

http://news.bbc.co.uk/1/hi/business/10335476.stm

I'm sick of hearing that the lowest paid will be worse off to be honest. A 35 year old earning 10k will be £245 better off. If it was £20k then £216 better off, £30k would be £116 better off.

I have no gripe with the VAT increase, finally a tax rise that EVERYONE will have to pay for to help pay for the debt our last government left. Not just the motorist, or those who like an occasional drink, or the smokers (I dont smoke), etc.

THRIFTY_GIRL

Captain_Moonshine wrote: »

As usual, the lowest paid get hit the most. The rise in basic allowance will be almost wiped out by the increase in National Insurance, and the remainder will be taken up by the VAT increase.

I thought the Tories were opposed to Labour's increase in N.I. It seems they were only opposed to the employers having to pay more. Surprise, surprise! :mad:

NO, NO, NO, The lowest paid do not get hit the most. I too,like the previous poster am a little fed up with the emphasis on low earners whilst middle earners are being clobbered with everything that comes their way.

I am not in favour of the harsh cutbacks but please consider the average person/family in this situation and do not imply that the poorer sections of society are the only ones hard hit.

As the ConDem coalition has said 'we are in this together'. We have been ConDemmed. Bunch of jokers think they can do anything and still think its ok to blame the outgoing administration. Have they fogotten what happened in 1990?

Captain_Moonshine

Unless I am reading it wrong, I will save £170 a year in income tax, but will pay an extra £125 a year in national insurance. That leaves me £45 a year better off. However, with the VAT increase the price of just about everything will rise considerably. The increase in VAT on road fuel alone will cost me an extra £13 a year assuming no price rises in the meantime, which is highly unlikely.

Like many others, I have had no increase in my pay since January 2007, but have seen my essentials (food, gas, electricity, rent, council tax, and water) increase by a total of over £150 a month since then, despite my efforts to cut back as much as possible.

Unlike most middle and higher income earners, I have no reserves to fall back on. I simply don't earn enough to put anything by.

I have debts that I cannot pay, from a time when I was better off. If I could get a job paying £30,000 a year I could clear them by Christmas, easily.

I work bl**dy hard for what little I do get, and I am fed up with people who already have more money than I can even dream about whinging about how badly off they will be. They can afford it, I can't! If any middle income earner wants to swap places with me for a year, I would be more than willing to give it a try. Any takers?

artha

THRIFTY_GIRL wrote: »

NO, NO, NO, The lowest paid do not get hit the most. I too,like the previous poster am a little fed up with the emphasis on low earners whilst middle earners are being clobbered with everything that comes their way.

I am not in favour of the harsh cutbacks but please consider the average person/family in this situation and do not imply that the poorer sections of society are the only ones hard hit.

As the ConDem coalition has said 'we are in this together'. We have been ConDemmed. Bunch of jokers think they can do anything and still think its ok to blame the outgoing administration. Have they fogotten what happened in 1990?

I've been around long enough now to get used to every change in Government claiming that the "The nations finances are in a mess and it's the fault of the outgoing government. Blame them when we have to take immediate action that hurts"