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Labour Vs Coalition policy

245

Comments

  • Wookster
    Wookster Posts: 3,795 Forumite
    CLAPTON wrote: »
    The 50p rate was announced in advance for implementation in the following April.
    people with more than two brain cells (including the Telegraph at that time) predicted that people would bring forward bonus and other income into the then current tax year.

    So a 100% preidctable result was that tax would go up in the then current tax year and fall in the next.

    Dave and George have now announced in advance that the 50 tax rate decreases next april to 45%

    A 100% certain prediciton is that people will now DELAY bonus and additional income streams until after april

    This will totally PROVE that higher tax rates lead to low tax returns.

    You are very conveniently forgetting that the only reason Labour brought the 50p rate in was as a trap for the next government. They knew it didn't work, infact even Alastair Darling was on record as saying it was too high.

    They played politics with the nation's finances to score political points.

    Not very edifying for a government.
  • Generali
    Generali Posts: 36,411 Forumite
    10,000 Posts Combo Breaker
    Kennyboy66 wrote: »
    75% tax is a dumb idea, but I doubt too many people caught in it (well none actually) are thinking "do I come in saturday and claim overtime".

    Perfectly true. I wonder how many of the 1,000 aren't sportsmen and women as it goes.

    The fact remains that high marginal rates of tax discourage people from putting in more work.
  • BertieUK
    BertieUK Posts: 1,701 Forumite
    Generali wrote: »
    Perfectly true. I wonder how many of the 1,000 aren't sportsmen and women as it goes.

    The fact remains that high marginal rates of tax discourage people from putting in more work.

    Really does not make too much sense to me, but it must be there for a reason. Mmm
  • Thrugelmir
    Thrugelmir Posts: 89,546 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Photogenic
    Wookster wrote: »
    You are very conveniently forgetting that the only reason Labour brought the 50p rate in was as a trap for the next government.

    More likely to appease the electorate. In the light of the continuing high bankers bonuses at the time.
  • BertieUK
    BertieUK Posts: 1,701 Forumite
    BertieUK wrote: »
    Really does not make too much sense to me, but it must be there for a reason. Mmm

    I would not dare to say that it may be politically motivated.
  • grizzly1911
    grizzly1911 Posts: 9,965 Forumite
    edited 28 November 2012 at 2:25PM
    Thrugelmir wrote: »
    More likely to appease the electorate. In the light of the continuing high bankers bonuses at the time.

    1.) I thought the limit was £150K not £1m.

    The £1m is used by commentators to hilight the £40k "give away" by reducing the rate, for those declaring an income of that amount .

    2.) That the first year it was brought in it was "instant" and did capture that years Bankers Bonuses, or at least gave little time to squirrel it away elsewhere. The second year they had more time to plan.

    3.) To consistently earn £150k you would think you would have to have some nous. Quite why anyone is exposed to large income tax bills above it is odd. Loosing the personal allowance over £100K isn't cheap either.
    "If you act like an illiterate man, your learning will never stop... Being uneducated, you have no fear of the future.".....

    "big business is parasitic, like a mosquito, whereas I prefer the lighter touch, like that of a butterfly. "A butterfly can suck honey from the flower without damaging it," "Arunachalam Muruganantham
  • Linton
    Linton Posts: 18,511 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Hung up my suit!
    since the loss of my child benefit I have had to change a few things around. one of the major impacts is that instead of getting X amount of child benefit, I have opted to sacrifice quite a bit of salary to my pension, which now attracts 40% tax relief and I still get child benefit. The rest I receive as dividend income.

    Well done Osbourne you inept c**t. You have actually cost the taxpayer more - in my case anyway.

    Hateful weasel of a man, and a hateful discriminative half baked policy.

    I find it interesting that a man of your principles adjusts his circumstances to maximise the benefit he gets from the state.
  • grizzly1911
    grizzly1911 Posts: 9,965 Forumite
    Linton wrote: »
    I find it interesting that a man of your principles adjusts his circumstances to maximise the benefit he gets from the state.

    Puts the "low life scum" he refers to in perspective.
    "If you act like an illiterate man, your learning will never stop... Being uneducated, you have no fear of the future.".....

    "big business is parasitic, like a mosquito, whereas I prefer the lighter touch, like that of a butterfly. "A butterfly can suck honey from the flower without damaging it," "Arunachalam Muruganantham
  • angrypirate
    angrypirate Posts: 1,151 Forumite
    edited 28 November 2012 at 2:46PM
    CLAPTON wrote: »
    I've no idea what your first sentance means or your reference to £1 million salaries.
    So your earn 160k but you dont want to pay 50% tax. To pay 40% tax you need to figure out a way of hiding 10k income from the taxman. Options in the past have included charity donations (they have cracked down on this i believe) and shoving it into pension schemes (there is now a limit on this too). Also setting up a company and paying your unemployed partner a small salary as a secratary / PA (just like Red Ken Livingstone). Im sure there are loads of other options but im just a lowly engineer, not an accountant.
  • StevieJ
    StevieJ Posts: 20,174 Forumite
    Part of the Furniture 10,000 Posts Combo Breaker
    edited 28 November 2012 at 5:04PM
    Generali wrote: »
    If my boss offers me overtime and I'll lose 75% of it to the Government (as is currently the case in France for high earners) I won't do the overtime. Does that make me a tax fraudster?

    So how does it work if you don't get paid for overtime as I guess most high earners don't ;) are you saying they don't bother doing it?
    'Just think for a moment what a prospect that is. A single market without barriers visible or invisible giving you direct and unhindered access to the purchasing power of over 300 million of the worlds wealthiest and most prosperous people' Margaret Thatcher
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