MSE News: Government outlines flat-rate state pension

edited 30 November -1 at 1:00AM in Pensions, Annuities & Retirement Planning
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  • gadgetmindgadgetmind Forumite
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    Tancred wrote: »
    Taxing the top 2% will never bring in much money, taxing the top 20% will - but no party seems willing to pay the political cost of this, and thus the country suffers as a result.

    Do you have the figures for how much of the total income tax bill is paid by the top 2% versus the top 98%? Ditto top 20% versus top 80%.

    I'd like to see these figures so that I can get a better understanding of the merit of your arguments.

    Thanks.
    I am not a financial adviser and neither do I play one on television. I might occasionally give bad advice but at least it's free.

    Like all religions, the Faith of the Invisible Pink Unicorns is based upon both logic and faith. We have faith that they are pink; we logically know that they are invisible because we can't see them.
  • JoeCrystalJoeCrystal Forumite
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    I found this article on BBC, bit out of date

    http://news.bbc.co.uk/1/hi/magazine/8417205.stm
  • hugheskevihugheskevi Forumite
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    Do you have the figures for how much of the total income tax bill is paid by the top 2% versus the top 98%? Ditto top 20% versus top 80%.

    Based on figures from HMRC for 2012/13, the top 3% of income tax payers pay 34% of all income tax, whilst the top 30% pay 77% of all income tax.
  • gadgetmindgadgetmind Forumite
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    Thanks. Sounds like taxing the top few percent is bringing in a lot of money, and I'd say there is a good argument that they are over-taxed.
    I am not a financial adviser and neither do I play one on television. I might occasionally give bad advice but at least it's free.

    Like all religions, the Faith of the Invisible Pink Unicorns is based upon both logic and faith. We have faith that they are pink; we logically know that they are invisible because we can't see them.
  • harz99harz99 Forumite
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    hugheskevi wrote: »
    Based on figures from HMRC for 2012/13, the top 3% of income tax payers pay 34% of all income tax, whilst the top 30% pay 77% of all income tax.
    gadgetmind wrote: »
    Thanks. Sounds like taxing the top few percent is bringing in a lot of money, and I'd say there is a good argument that they are over-taxed.

    How so? All those figures above illustrate is that those who are paid fabulous sums of money and pay tax in this country, pay a fair and proportionately large amount of tax on those fabulous sums.

    The figures quoted also well illustrate the point Tancred made regarding bringing more, be it 20 or 30%, taxpayers into the scope of the higher tax bands.
  • gadgetmindgadgetmind Forumite
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    harz99 wrote: »
    bringing more, be it 20 or 30%, taxpayers into the scope of the higher tax bands.

    And would the last person out of Britain please turn off the lights.
    I am not a financial adviser and neither do I play one on television. I might occasionally give bad advice but at least it's free.

    Like all religions, the Faith of the Invisible Pink Unicorns is based upon both logic and faith. We have faith that they are pink; we logically know that they are invisible because we can't see them.
  • wakeupalarmwakeupalarm Forumite
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    Even the poorest of the poor pay tax. Its just they may pay proportionally less via income tax and proportionally more via VAT and other taxes.

    This focus on the the top paying a large portion of income tax is a very narrow view considering the amounts of tax collected via VAT and other means.

    Its like looking at pensioners as all being poor because their pensions are less then average wages but not taking into account that they may have large amounts of income from savings, investments or property rental income as well as having lower expenses due to having paid off their mortgage/ lower travel costs, etc.

    And on the flip side some pensions could be assest rich due to the value of their homes but have very limited income.
  • joefriedjoefried Forumite
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    Forgive me if this has been already answered -- I've looked through this thread and not seen an answer -- but can you delay taking your state pension in order to get the new flat rate pension?

    At the moment you can delay your pension to get an increased payment. Does this stop in April 2017?

    Joe
  • Old_SlapheadOld_Slaphead Forumite
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    joefried wrote: »
    Forgive me if this has been already answered -- I've looked through this thread and not seen an answer -- but can you delay taking your state pension in order to get the new flat rate pension?

    At the moment you can delay your pension to get an increased payment. Does this stop in April 2017?

    Joe

    No, it's the date you are entitled to start taking it not the actual date you start that applies.

    You will still be able to defer after 2017 but it won't affect whether you qualkift for the 'old' or 'new' rates
  • joefriedjoefried Forumite
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    Thanks for that. Though it's depressing.

    Joe
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