The Gordon Brown 20% Tax Con.

robpw2

we need to get rid of labour! historically thy come in run the country into the ground the leave it to the conseraties to sort out whih means they make controversial tax hikes and we start again

penrhyn

kittie wrote: »

lets get down to actual figures. I am a 60 year old woman. My total income is £11911. My tax liability will be approx £1295. This is approx £645 more than if tax were at 10%. We are living off my pension plus savings at the moment and choose to drawdown my dh`s pension in 4 years time

Reality has hit home re the 20%. Is there a petition to sign anywhere?

I'm not sure how you worked this out, the 10% band applied to the first £2230 of taxable income, you would have been paying £223 tax on this, but will now be paying £446, i.e a £223 increase. Personal allowances have gone up so its £21 less than that.

notbritishgas

penrhyn wrote: »

I'm not sure how you worked this out, the 10% band applied to the first £2230 of taxable income, you would have been paying £223 tax on this, but will now be paying £446, i.e a £223 increase. Personal allowances have gone up so its £21 less than that.

And of course she previously paid tax at 22% on the remainder of her taxable income, she will now pay tax at 20% on that, a further saving.

PS I am not defending Gordon Brown AT ALL!!

EdInvestor

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:

EdInvestor

7DW

seven-day-weekend wrote: »

Just different things have gone wrong, like the Health and Education Services. No affordable housing. Couples having to farm their children out in nurseries because they can't afford to stay at home and look after them. Feral teenagers on the streets. Nanny State which prosecutes you if you eat an apple whilst driving, use the wrong dustbin or smoke where you shouldn't but takes away all disciplinary measures from teachers and law enforcers.

Do I detect you are a reader of the Daily Mail?

iltisman

I fear that things could easily get worse in future budgets. Inflation is roaring away and the public sector unions will soon be pushing for big pay rises so the basic rate of income tax could easily rise to 25%.

treliac

iltisman wrote: »

the public sector unions will soon be pushing for big pay rises

Which they're not likely to get.

Public sector pay has been falling behind private sector for years. UNISON members voted against strike action last year. It would be an extremely strong mood change if this year's vote were to be different, although not to be ruled out totally given current feeling.

However, the union seems pretty toothless now and capitulates after only the most modest of increases negotiated against offers.

chesky369

But the public sector still has the enormous benefit of the wonderfully generous final salary pension scheme, which must add a further 15% value to salaries and which the private sector can no longer afford.

moonrakerz

If I were to be really cynical I might be tempted to say that this is typical of a socialist government.
Make as many people as you can dependent on the State for tax credits, pension credits, this allowance, that allowance, etc, etc, etc ... and they then become totally reliant on the State system - which of course can only be properly administered when all those who depend on it keep voting Labour !

A little bit more subtle than Mugabe's method of staying in power !

seven-day-weekend

EdInvestor wrote: »

7DW





Do I detect you are a reader of the Daily Mail?

I was for years:eek: (started taking it as a teenager as I liked the crossword) but for the last seven or eight years I have taken the Telegraph:beer: