Boris wants to raise 40% threshold

redux

dunstonh wrote: »

This is playing to the audience with the hope of a majority after an election.

I don't think he's bothering to look that far into the future.

ex-pat_scot wrote: »

2. this will have a big impact on rich pensioners - anyone who is taking pension income >£50,000 will not be suffering NI anyway, and so the £50,000 to £80,000 band will result in a £6,000 lower tax charge. Frankly I doubt there are many in this circumstance though.

Well represented amongst Conservative party members though (average age 57).

Perhaps he's trying to buy votes for the party leadership, at the potential risk of later disillusion amongst less well-off Leave supporters.

And he already knows how worthless his own promises are.

Keep_pedalling

Apparently this is to be funded from the money set aside for a no deal brexit, which is the only sort of brexit this idiot is capable of bring about, so the only way he can deliver the tax cut is to have no brexit.

nigelbb

ex-pat_scot wrote: »

2. this will have a big impact on rich pensioners - anyone who is taking pension income >£50,000 will not be suffering NI anyway, and so the £50,000 to £80,000 band will result in a £6,000 lower tax charge. Frankly I doubt there are many in this circumstance though.

For those of us past state pension age & still working full time an extra £6K/year sounds too good to be true. Hang on a minute it's a promise from that well known liar Boris Johnson so isn't going to happen any more than the NHS is going to get an extra £350 million a week.

vulcanrtb

prowla wrote: »

I think the limit should be raised, as a salary 40k is not exactly the life of Riley; however, I would suggest that 80k would be quite a jump.

You mean £50k? And £50k is quite a lot more than the UK average salary.

lollynerd

I'm not particularly anti Boris, but this doesn't seem sensible and I don't think it will buy him many votes. In fact it may lose more than it wins.
Every time a politician (of any colour) promises more spending/less tax, we should ask them where they will be saving money to pay off our £2 Trillion debt. That's about £250 million a day in interest charges. How will they redeem this money?

Triumph13

I'd agree that this looks like a clear vote loser across the country, but may help with the votes of Tory party members. It isn't necessarily clear though what the impact on total tax take would be due to the Laffer curve.
The best thing for many would be enjoying how much it annoys the Scots who would then have a huge band at 53% tax and NI...

Smellyonion

The 40% tax rate is a myth and it makes people assume they pay 100% more tax than the 20% lot.


Those on the "40%" pay 2 % NI whereas everybody else pays 12%.


The real tax rate is 32% for lower band and 42% for the higher bans, 31% more not 100% more....


An increase in personal allowance should be at the top of everybody's agenda - Encouraging work and it is a net benefit to all tax payers.

lisyloo

Smellyonion wrote: »

The 40% tax rate is a myth and it makes people assume they pay 100% more tax than the 20% lot.


Those on the "40%" pay 2 % NI whereas everybody else pays 12%.


The real tax rate is 32% for lower band and 42% for the higher bans, 31% more not 100% more....


An increase in personal allowance should be at the top of everybody's agenda - Encouraging work and it is a net benefit to all tax payers.

Good post, but the threshold that this thread refers to also affects those of us that pay tax on dividends.
The maths being 7.5% vs 32.5% and no NI, so 333% increase for people like me. Is my maths correct?

Perhaps Boris isn’t aiming this solely at those on PAYE?

nigelbb

Smellyonion wrote: »

The 40% tax rate is a myth and it makes people assume they pay 100% more tax than the 20% lot.


Those on the "40%" pay 2 % NI whereas everybody else pays 12%.


The real tax rate is 32% for lower band and 42% for the higher bans, 31% more not 100% more....

Not so. For those of us who are past state pension age as we don't pay NI it really is 20% & 40% so 100% more.

bluenose1

Smellyonion wrote: »

The 40% tax rate is a myth and it makes people assume they pay 100% more tax than the 20% lot.


Those on the "40%" pay 2 % NI whereas everybody else pays 12%.


The real tax rate is 32% for lower band and 42% for the higher bans, 31% more not 100% more....


An increase in personal allowance should be at the top of everybody's agenda - Encouraging work and it is a net benefit to all tax payers.

Good point, never thought about that before. I always assumed (incorrectly) it was double.