Who's considered emmigrating because of tax?

bendix

Oh but haven't you heard tillycat? You can afford it, and it's your duty to support everyone else.

tillycat123

I know Bendix, supporting those poor people like one of my friends. Husband left her 6 months ago, has three children, husband was a 'middle income' earner. The state feels so sorry for her now that her monthly household income is higher than ours, she said she has never had it so good, no intention of finding a job herself as there is no point and she is right!

Another friend who was a hard working consultant lost a major client when the world fell apart 2 years ago and he was forced to close down. He now works evenings in Tesco stacking shelves.

Again 3 children and again better off financially than earning over £100k as he did. Gets to spend quality time with the family and now takes a couple of holidays a year. His benefits now = more than he was bringing home.

Yes we are fed up of paying our 'fair' share to allow people to be better off not working or doing very little.

JimmyTheWig

FTBFun wrote: »

The personal allowance is progressively withdrawn from £100,000 so that's gone too.

gadgetmind wrote: »

Yup, 62% taxation in that band.

It's high, isn't it.

Nearly as high as that for those earning around £30k who, for every additional pound they earn, lose 20p in income tax, 12p in NI and 41p in tax credits. That's 73% taxation for them.

JimmyTheWig

tillycat123 wrote: »

I know Bendix, supporting those poor people like one of my friends. Husband left her 6 months ago, has three children, husband was a 'middle income' earner. The state feels so sorry for her now that her monthly household income is higher than ours, she said she has never had it so good, no intention of finding a job herself as there is no point and she is right!

Another friend who was a hard working consultant lost a major client when the world fell apart 2 years ago and he was forced to close down. He now works evenings in Tesco stacking shelves.

Again 3 children and again better off financially than earning over £100k as he did. Gets to spend quality time with the family and now takes a couple of holidays a year. His benefits now = more than he was bringing home.

Yes we are fed up of paying our 'fair' share to allow people to be better off not working or doing very little.

Tillycat, either you are lying to us or your friends are lying to you.

I'm not surprised that your single friend is better off not doing paid work when she'd have to pay in the region of £15 an hour in childcare. [I wouldn't say, with three children to run around after, that she wasn't working, however.]
But I don't believe that she will be getting £64k in benefits (which is what someone earning £100k would take home).

What benefits is she getting?

Randvegeta

bendix wrote: »

Not just working residents. All permanent residents, including non-working pensioners and even HK permanent residents who live overseas.

WHAT? I'm a permanent resident! Where's my $6000!

gadgetmind

JimmyTheWig wrote: »

It's high, isn't it.

Nearly as high as that for those earning around £30k who, for every additional pound they earn, lose 20p in income tax, 12p in NI and 41p in tax credits. That's 73% taxation for them.

Any system like tax credits, which takes with one hand and (sometimes) gives back with the other, is always bound to cause anomalies. We need tax simplification, big time.

JimmyTheWig

gadgetmind wrote: »

Any system like tax credits, which takes with one hand and (sometimes) gives back with the other, is always bound to cause anomalies. We need tax simplification, big time.

Yes, of course there will be anomalies with any system. E.g. those earning 100k will pay a higher marginal rate for a while (while they lose their personal allowance) than those earning 130k.

But what I'm talking isn't about it being a little rough around the edges. It's the case for many, many people.
It looks like I was being too generous when I said the problem hits people earning 30k. According to http://www.hmrc.gov.uk/rates/taxcredits.htm it looks like working people earning £16k+ with children will be hit with the 73% marginal rate.

Randvegeta

JimmyTheWig wrote: »

Yes, of course there will be anomalies with any system. E.g. those earning 100k will pay a higher marginal rate for a while (while they lose their personal allowance) than those earning 130k.

But what I'm talking isn't about it being a little rough around the edges. It's the case for many, many people.
It looks like I was being too generous when I said the problem hits people earning 30k. According to http://www.hmrc.gov.uk/rates/taxcredits.htm it looks like working people earning £16k+ with children will be hit with the 73% marginal rate.

Forgive my ignorance, but how do tax credits increase the marginal rate for low income earners?

gadgetmind

JimmyTheWig wrote: »

will be hit with the 73% marginal rate.

Yes, but all that's really happening, is that they are slowly being exposed to a 20% tax rate and still get their personal allowance, hence low tax overall.

Above £100k, some folk are being exposed to 40% tax and lose their entire personal allowance.

Of course, if instead two spouses earn £50k each, most of their income is taxed at 20% and very little at 40%.

JimmyTheWig

Randvegeta wrote: »

Forgive my ignorance, but how do tax credits increase the marginal rate for low income earners?

For every extra pound you earn (gross) your tax credits go down by 41p.
As well as paying 20p income tax and 12p NI on that pound.

So for every pound you earn the amount of money in your pocket only goes up by 27p - therefore they have an effective marginal rate of 73% tax.