Today's Budget

Graham_Devon

It's amusing listening to higher rate taxpayers (those paying 50p) on 5 Live. Anyone else listening to it?

One has just been asked what sacrifices they had to make when they found out they would pay the 50p tax. She stated "well we couldn't just spend freely, we had to think about it". LOL.

Graham_Devon

StevieJ wrote: »

The Libdems say this is a boon for the poorly paid but will the tax saving not just be offset by a reduction in working tax credit?

Many don't get working tax credit.

And in any case, it's far better for people to keep their own money, rather than concentrating on taking more and giving some back.

ILW

StevieJ wrote: »

The Libdems say this is a boon for the poorly paid but will the tax saving not just be offset by a reduction in working tax credit?

It will be good for those that do not get benefits ny whatever name they are called. Seems the way to go. I believe we do need to get away from the idea that virtually everybody is entitled to some sort of payout or another.

StevieJ

ILW wrote: »

It will be good for those that do not get benefits ny whatever name they are called. Seems the way to go. I believe we do need to get away from the idea that virtually everybody is entitled to some sort of payout or another.

Fair enough as long as we all undestand that the very poorly paid will not gain out of this measure.

ILW

StevieJ wrote: »

Fair enough as long as we all undestand that the very poorly paid will not gain out of this measure.

The poorly paid that do not receive benefits, will gain as far as I can see.

FTBFun

Graham_Devon wrote: »

It's amusing listening to higher rate taxpayers (those paying 50p) on 5 Live. Anyone else listening to it?

One has just been asked what sacrifices they had to make when they found out they would pay the 50p tax. She stated "well we couldn't just spend freely, we had to think about it". LOL.

Higher rate is 40p, Graham, and will start at a lower rate again as the additions to the personal allowance are counterbalanced by lowering the threshhold at which the 40p rate starts.

You're thinking of additional rate taxpayers who already have nil personal allowance as this is phased out on those earning over £100k.

Conrad

The greatest urban myth is the one that anyone earning £150k is in the top 1%.

For example my GP clients earn way more than this in most cases but they put the income through thier Ltd co, pay a big proportion of it to thier spouse and thus even thought they do earn more than £150k, the official income stats do not show this of course.

I'm in the South East were many people are small SME owners, for example own a small building co plus a dirt bike track on the side. They drive Q8's, have £1.5m houses, places abroad and so on, but invariably show up well under the £150k bracket, because yet again all sorts of structures are employed to reduce Tax.

I'm supposedly a high earner, yet we are at best average in terms of wealth locally. We cannot afford the flash cars and holidays or the £1.5m homes that so many folk we know can. These people are litteraly everywhere in the home counties.

I feel sorry for genuine higher earning employees who are the ones really being squeezed now.

A Labour MP said on radio 5 that an employee earning £50-£60k is in the top 5/6%!!!!!!!!!!!

Honestly this is so laughable. Nearly all my 1 man band traders make about £1000 per week, but thier Tax bill reflects an income under £25k. Even black cabbies I deal with tell me they make £900 - £1300 per week, but thier earning end up showing in the stats at about £25k.

vivatifosi

StevieJ wrote: »

The Libdems say this is a boon for the poorly paid but will the tax saving not just be offset by a reduction in working tax credit?

As Graham said, wtc doesn't help everyone. A lot of low earners are young, or empty nesters towards the end of their career.

It's a funny old world in which the 10p tax band gets stolen by Labour and then the situation for such low paid workers is rectified by the Conservatives.

ILW

Conrad wrote: »

The greatest urban myth is the one that anyone earning £150k is in the top 1%.

For example my GP clients earn way more than this in most cases but they put the income through thier Ltd co, pay a big proportion of it to thier spouse and thus even thought they do earn more than £150k, the official stats do not show this of course.

I'm in the South East were many people are small SME owners, for example own a small building co plus a dirt bike track on the side. They drive Q8's, have £1.5m houses, places abroad and so on, but invariably show up well under the £150k bracket, because yet again all sorts of structures are employed to reduce Tax.

I'm supposedly a high earner, yet we are at best average in terms of wealth locally. We cannot afford the flash cars and holidays or the £1.5m homes that so many folk we know can. These people are litteraly everywhere in the home counties.

I feel sorry for genuine higher earning employees who are the ones really being squeezed now.

A Labour MP said on radio 5 that an employee earning £50-£60k is in the top 5/6%!!!!!!!!!!!

Honestly this is so laughable. Nearly all my 1 man band traders make about £1000 per week, but thier Tax bill reflects an income under £25k. Even black cabbies I deal with tell me they make £900 - £1300 per week, but thier earning end up showing in the stats at about £25k.

That sort of system seems to have done well for the Greeks.

StevieJ

vivatifosi wrote: »

As Graham said, wtc doesn't help everyone. A lot of low earners are young, or empty nesters towards the end of their career.

It's a funny old world in which the 10p tax band gets stolen by Labour and then the situation for such low paid workers is rectified by the [STRIKE]Conservatives.[/STRIKE] LibDems

I have corrected that for you