Who should pay higher rate tax?

edited 30 November -1 at 1:00AM in Money Saving Polls
19 replies 7.3K views
Former_MSE_NatashaFormer_MSE_Natasha
672 Posts
edited 30 November -1 at 1:00AM in Money Saving Polls
Poll Started 28 November 2006:

Who should pay higher rate tax? Everything earned above £38,300 a year is eligible for 40% income tax (compared to 22% basic rate tax). Which of the following options is closest to your opinion? Remember if you lower the threshold millions more will be caught but if you raise it the tax needs to be made up elsewhere; probably by adding a percentage point or two on the basic rate.


A. Drop it to £18,000
B. Drop it to £28,000
C. Keep it at £38,000
D. Raise it to £48,000
E. Raise it to £68,000
F. Raise it to £100,000
G. There should be no higher rate

Vote here or click reply to discuss
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Replies

  • divadeedivadee Forumite
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    i think we should eitehr have a flat rate of tax so for eg. everyone pays 15% this would save millions as it would be much easier to calculate etc...

    if they dont want that i think we should have another higher bracket so for anyone earning over £100k they should pay 45%

    and anyone earning over a million should pay 50% :D
  • caroline1973leftycaroline1973lefty Forumite
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    I couldn't vote in this poll as there was not an option to make the tax system fairer, and I am actually rather disappointed in MSE for the way they have structured this poll.

    The only options in this poll is either to leave middle income people being treated the same way as the super rich (ie all in the same 40% tax bracket), or treat middle income people the same way as poor people (ie a low tax bracket). Why is there not a third option which is to treat high income people (anyone earning £100k or more, say) appropriately.

    frankly, who needs to take home more than £70,000 a year - why shouldn't they pay a higher rate of tax (ie, higher than 40%) on any earnings over£100,000 a year? It is obscene that city kids and fat cats take home 6 figure sums, (and also often avoid tax through legal loopholes) when a quarter of children live in poverty, 1 in 7 are homeless, and thousands of old people freeze to death through poverty every year.:mad:

    Hurumph, rant over. just living up to my user name!!
    "The Earth provides enough to satisfy every man's need, but not every man's greed" - Ghandi
  • MSE_MartinMSE_Martin MoneySaving Expert
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    Caroline,

    I deliberately make polls stark choices, though the world isn't black or white. That's the fun of it :)

    Martin
    Martin Lewis, Money Saving Expert.
    Please note, answers don't constitute financial advice, it is based on generalised journalistic research. Always ensure any decision is made with regards to your own individual circumstance.
    Don't miss out on urgent MoneySaving, get my weekly e-mail at www.moneysavingexpert.com/tips.
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  • teddycoteddyco Forumite
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    Lower taxes for everyone, taxes in this country are already too high.
    Leading economists have said for years that lower taxes actually increases revenue for the government because lower taxes encourages more investment from other countries into this country, easier for small businesses to start, more consumer spending because folks have more money.

    I watched a recent propaganda TV commercial by the Labour Government where two old ladies were cheering because they had received several hundred pounds for their heating allowance.

    What they failed to indicated, and I am sure these two sweet ladies did not know, is that for every £200 Labour gives away, it clawed £400 back through higher council taxes, higher petrol taxes, etc.

    Lower the taxes, Socialism doesn't work!
  • MSE_MartinMSE_Martin MoneySaving Expert
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    Go on then - draft me a fair poll on taxes.... No more than ten options - no more than 6 words in each option - you can only vote for one thing :)

    Seriously I'd be more than happy to include it - if it works.

    Martin
    Martin Lewis, Money Saving Expert.
    Please note, answers don't constitute financial advice, it is based on generalised journalistic research. Always ensure any decision is made with regards to your own individual circumstance.
    Don't miss out on urgent MoneySaving, get my weekly e-mail at www.moneysavingexpert.com/tips.
    Debt-Free Wannabee Official Nerd Club: (Honorary) Members number 000
  • Have to say I was rather dissapointed with the results I saw after giving my opinion. It gave the impression that the site it used mainly by 'money' people, rather than 'normal' people aspiring to save a little cash. Maybe the question should have been about inflation rather than tax.
  • It's fair enough as a simple question, because the 40% tax rate is swallowing up more and more people - my last wage rise pushed me into it - and that must be costing a fortune in chasing people up about it.

    But I'm more concerned about further down the scale - nobody earning less than (say) £10,000 should be paying more than 10% in tax, for example.

    Of course, though, if any government of any party wastes your tax money, it doesn't really matter how much you pay, because it'll still be too much.
  • hobo28hobo28 Forumite
    1.6K Posts
    I like the question. I would also be interested in knowing what people earn and how they voted.

    My suspicion is that most people who earn above the £38k limit will vote to raise the limit, those who don't will vote to keep it.

    The fairest and simplest tax system is one rate for everyone. That way everyone pays the same proportion of their income. I'll be shot down now in flames for daring to suggest that a millionaire shouldn't pay slightly more than the council toilet cleaner. In actual fact, said millionaire would be paying a lot more tax than the proverbial cleaner.

    But look at the current tax system. I've no idea what I'm paying is correct. I've no idea what proportion of tax I am paying and all the "millionaires" do is employ clever accountants so they don't have to pay tax. Does anyone here think that the Wayne Rooney's of the world actually pay 40% income tax???

    Actually I think the real reason the government don't introduce one rate of tax is that then people would see far too easily how much we get taxed and its not a vote winner.
  • caroline1973leftycaroline1973lefty Forumite
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    have tried to take on Martin's challenge! here is my draft suggestion, bearing in mind particularly daryl's points.

    "Assuming that 'rich' means those earning over £100,000 per year, 'well off' means those earning over £38,000 and up to £100,000 per year, average means those earning over £15,000 and up to £38,000 per year, and poor means those earning less than £15,000 per year, and assuming that any reduction in the overal income tax take, will mean either reductions in public spending AND/OR heavier taxes on consumer spending eg VAT, do you think the priority for income tax reform should be:
    a tax the rich more
    b tax the well off more
    c tax the averagely off more
    d tax the poor more
    e tax the rich less
    f tax the well off less
    g tax the averagely off less
    h tax the poor less
    i scrap tax credits
    j scrap tax loopholes"

    How's that?
    "The Earth provides enough to satisfy every man's need, but not every man's greed" - Ghandi
  • caroline1973leftycaroline1973lefty Forumite
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    actually i think scrap tax credits is a silly option, better to replace it with 'leave the system as it is'
    "The Earth provides enough to satisfy every man's need, but not every man's greed" - Ghandi
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