DOOM: Public don’t want tax cuts Truss and Sunak are promising, poll reveals

[AtW]

"As the Tory leadership hopefuls clash over when to reduce taxes, the public are more concerned with maintaining funding

Most of the public are not demanding taxes are cut, and more than a quarter actually want them to increase in order to spend more on public services, a new Observer poll has revealed.

Despite a Tory leadership contest dominated by the timing of tax cuts, the latest Opinium poll found no great clamour for them, with concerns around the funding of schools and the NHS heading into the autumn.

About a third (34%) say taxes and spending on public services should remain at current levels, while 26% think there should be an increase in tax to increase funding. Only 22% said that taxes should be reduced and less spent on public services.

The lack of enthusiasm was also apparent among those who voted Conservative at the last election, with 41% saying they wanted to see levels remain as they are now. Meanwhile, 27% want to see a cut in taxes and 22% want to see an increase."

https://www.theguardian.com/business...g-poll-reveals

[jamesbrown]

Of the 22% that want an increase, 100% want an increase in someone else's taxes.

[Fraidycat]

50% of the working population earn around 25K or less.
At 25K the take home is almost 21K, so pay roll taxes are just 15% of total earnings.
Many of those work part time and pay 0% tax (If earning up to 13K a year)

Then there are pensioners and those on benefits who pay very little or no tax as well.

So it is easy to see why a majority of the UK population don't see much need for payroll tax cuts.

22% want to see an increase -- Most of those will be tory voting pensioners, who are no longer higher rate tax payers.

[NotAllThere]

So Sunak is the least unpopular choice since his tax cuts don't come in until later.

[malvolio]

Actually pensioners do pay tax, at standard rates. When your state pension starts, your tax free allowance is immediately reduced by the same amount. If you get an ex-company pension on top - and a lot of them don't - that is therefore taxed at full rate from day 1.

Given the state pension is about £180 a week these days, and often quite a bit less, I don't think including pensioners in the tax argument is all that helpful.

[Fraidycat]

Actually pensioners do pay tax, at standard rates. When your state pension starts, your tax free allowance is immediately reduced by the same amount. If you get an ex-company pension on top - and a lot of them don't - that is therefore taxed at full rate from day 1.

Given the state pension is about £180 a week these days, and often quite a bit less, I don't think including pensioners in the tax argument is all that helpful.

Yes pensioners are liable for tax but majority do not pay very much or none at all. Average pension including state pension is £300 a week. So 16000 a year.

Income tax on 16K is negligible. About 600 quid.

Even someone with a fatter 40K a year pension income will only pay just 5.6K in income tax and 0K in NICs

So if you ask a typical pensioner if income taxes should be cut they are going to so No because they don't pay much or any, more likely they will say income tax should be raised so they get a bigger state pension and/or better health care.

[malvolio]

Yes pensioners are liable for tax but majority do not pay very much or none at all. Average pension including state pension is £300 a week. So 16000 a year.

Income tax on 16K is negligible. About 600 quid.

Even someone with a fatter 40K a year pension income will only pay just 5.6K in income tax and 0K in NICs

So if you ask a typical pensioner if income taxes should be cut they are going to so No because they don't pay much or any, more likely they will say income tax should be raised so they get a bigger state pension and/or better health care.

Speaking as a normal pensioner with a supplemental personal pension paid for out of MyCo's earnings, I disagree.

Your numbers are about right. Let's assume £150 a week is state pensions, or £7800 a year. That reduces your personal allowance to £4700. The other £7800 a year (to get to £300 a week) will be paying tax on £3100 or £620 a year. Or 15% of your total income in tax. So proportionately, given the tiny amount of money you have to live on, not exactly an insignificant overhead.

Pensioners - in fact people in general - don't notice their actual tax bill, but that doesn't mean it is trivial