Labour Vs Coalition policy

StevieJ

chewmylegoff wrote: »

How hard do you think I am prepared to work to get each extra £1 of bonus for which I receive 40p? Or actually 39p with NI. The answer is that I am not.

Not committed then I suppose you could read my statement two ways

shocky_2

You guys put far too much emphasis on the 50% rate. An increase in income tax from 45% to 50% is not a huge jump because the rates were already high. Avoiding that 5% increase is actually a much less significant part of people's tax planning than other things, e.g. restructuring income so that it counts as capital gains is much more significant.

By the way, the reason for the drop was the fact that the investment banks stopped paying bonuses that year. This was because of the economy and nothing to do with the 50% rate. The figure has since gone back up.

Zero_Sum

chewmylegoff wrote: »

I'm not sure how that would help me with my PAYE salary paid in the UK, pretty sure my employer would keep deducting the tax. More likely they would sack me for not turning up to work as my office is not in the BVI.

My salary + bonus calculation means that if I work really hard I can push my gross income into the region where I lose my personal allowance and get taxed at a marginal rate of 60%. Or I could not really bother to work too hard and scrape in just below that.

How hard do you think I am prepared to work to get each extra £1 of bonus for which I receive 40p? Or actually 39p with NI. The answer is that I am not.

or 38p, as NI is 2%

thor

youngsolicitor wrote: »

By the way, the reason for the drop was the fact that the investment banks stopped paying bonuses that year. This was because of the economy and nothing to do with the 50% rate. The figure has since gone back up.

So you're not convinced by Wookster's propaganda then?

BobQ

The_White_Horse wrote: »

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.

Maybe Osborne believed that his changes would have engendered a more principled and moral reaction on the part of those disadvantaged by his necessary "we are all in it to gether" policies ?

BobQ

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.

Maybe we should be encouraging people to work less overtime and encourage employers to take on more staff to do the required work.

A._Badger

BobQ wrote: »

Maybe we should be encouraging people to work less overtime and encourage employers to take on more staff to do the required work.

Yes! And maybe we could institute a 35 hour week like the French did? That worked wonderfully well.