The Gordon Brown 20% Tax Con.

Errata

Public sector pay was always lower than private sector because of the gold plated cast iron pension.

moonrakerz

Errata wrote: »

Public sector pay was always lower than private sector because of the gold plated cast iron pension.

Don't think that you can actually put gold plate onto cast iron :rolleyes:

notbritishgas

EdInvestor wrote: »

It seems to work like this:

Take income of 10k and personal allowance of 5435 for this year.

Deducting the p.a you are left with 4565.

Under the old system, 2k would be taxed at 10%, ie 200 pounds payable
The remaining 2565 is taxed @22% ie 630 pounds payable.
Total tax payable, 830 pounds.

Under the new system, the reminaing 4565 is taxed at 20%
Total tax payable, 913.

Difference: 83 pounds.

Using an income of 14k, the difference works out at 69 pounds, and with an income of 6k, a shortfall of 57 pounds.


The Govt is claiming the extra heating allowance of 50 pounds makes up the difference which it obviously doesn't, even in the lowest case.

But if it were to be increased to 100 pounds......:cool:

Hi Ed, just a couple of points, the 10% tax band was actually £2230, and I make 22% of £2565 = £564.
So even compensation of £100 would not cover the increase.

EdInvestor

Oops sorry, so it's worse than thought.Judging by today's papers the issue is devleoping a nice head of steam now, so looks likely something could be done about it.

Errata

EdInvestor wrote: »

Oops sorry, so it's worse than thought.Judging by today's papers the issue is devleoping a nice head of steam now, so looks likely something could be done about it.

Darling says he can't change anything in the budget. For can't read won't.
He may have to eat his words.

royeee

Errata wrote: »

Darling says he can't change anything in the budget. For can't read won't.
He may have to eat his words.

Well, that's what apparently happened yesterday though its not explicit how he will compensate though it appears he'll use the winter fuel allowance mechanism.

krisskross

royeee wrote: »

Well, that's what apparently happened yesterday though its not explicit how he will compensate though it appears he'll use the winter fuel allowance mechanism.

I would love to know how. Is it to be a blanket extra payment to all, for instance, 60-65 year old women? Some women in that age group will certainly still earn enough to have been 'winners' in the Gordon Brown tax game. It will be expensive to target it i would think.

penrhyn

They have done enough to fool Frank Field and the rebels into coming back into line.
Don't think for a moment that they will really do much if anything for the rest of those who are losing out.
Did anyone see that stupid Yvette Cooper woman on newsnight the other night, what a cow!

http://blogs.telegraph.co.uk/politics/threelinewhip/april08/wholetyvetteonnewsnight.htm

bubblesbonbon

penrhyn wrote: »

Did anyone see that stupid Yvette Cooper woman on newsnight the other night, what a cow!

http://blogs.telegraph.co.uk/politics/threelinewhip/april08/wholetyvetteonnewsnight.htm

Well & truly stitched up by her bosses - putting her up against Paxman the bull and we all know what happens then.

(Well us country folk do anyway)

sanfly

In a nut shell, people who have retired early are not going to get anything and will be left worse off !!!!!:mad: