Originally posted by Whorty
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Tory Scum Rebels
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Originally posted by Paddy View PostThere are more important issues than income tax at the moment. You survived until now, so you can survive until the economy is sorted out first.
And how would, exactly, keeping 45% band will help sort out the economy?
Here is HMRC document: https://assets.publishing.service.go...Accessible.pdf
Go to page 26 and observe "costs" of various policy measures:
1. Stopping Rishi's NIC tax grab: around 15 bln per year reduction in taxes
2. 1.25% Dividend tax reversal: around 1 bln per year
3. Removing 1% income tax from 20% to 19% - 5 bln in the first year, later supposedly neutral (now this is BS, it will be the same 5 bln loss per year, it's levied from same base as NICs)
4. Corp tax cancellation - 16-17 bln per year "loss"
5. 45% to 40% - about 2 bln "loss" pear year.
So two items in the list make up for 90% "loss" and it ain't 45% tax reduction, which in my view would certainly make money like it happened when 50% dropped to 45%Last edited by AtW; 2 October 2022, 15:47.Comment
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Originally posted by Whorty View PostAnd you're fixated on the extra bit of tax you may have to start paying again.
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Originally posted by AtW View Post
And how would, exactly, keeping 45% band will help sort out the economy?
Here is HMRC document: https://assets.publishing.service.go...Accessible.pdf
Go to page 26 and observe "costs" of various policy measures:
1. Stopping Rishi's NIC tax grab: around 15 bln per year reduction in taxes
2. 1.25% Dividend tax reversal: around 1 bln per year
3. Removing 1% income tax from 20% to 19% - 5 bln in the first year, later supposedly neutral (now this is BS, it will be the same 5 bln loss per year, it's levied from same base as NICs)
4. Corp tax cancellation - 16-17 bln per year "loss"
5. 45% to 40% - about 2 bln "loss" pear year.
So two items in the list make up for 90% "loss" and it ain't 45% tax reduction, which in my view would certainly make money like it happened when 50% dropped to 45%
Blog? What blog...?Comment
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Originally posted by malvolio View PostAll of which ignores any beneficial effects from having more money in the economy, especially among the better paid, and companies moving in to pick up the lower CT rate. Plus of course the NIC increase and Rishi's NIC tax grab haven't happened, so you're counting that as a drop in income. Gordon Brown would be so proud of your grasp of economics...
Beneficial effects from CT/1%/NICs tax cuts can and should be debated, but the main point I was making that for financial stability these “cuts” are much much bugger than 45% which got all the flak (and it will actually make money unless Labour elected again)Comment
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Originally posted by AtW View Post
Reducing tax from 45% to 40% will actually increase tax take, why would you or anybody else be against that?
Seriously fella, let it go. You've made your point but you're in a minority on here and keep opening the same whiny posts about it isn't going to change anyone's mind.
There are a lot of people in this country who are going to struggle to heat their homes this winter, but all you seem to be concerned about is possibly paying a bit of extra tax on income over £150k It's probably time to get a bit of perspective.
I am what I drink, and I'm a bitter manComment
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Originally posted by Whorty View Post
That may well be the case, but given these Tories are making this change, and every one in the cabinet will personally directly benefit, it's maybe not the best message to give to the poorest in the country. If cutting this tax really does benefit the economy then the Tories could have done it at any time the past 10 years but they chose not to. So are you saying that they only now realise that cutting it to 40% is good for the economy?
In terms of energy poverty - that is result of decades of high taxes on North Sea rigs, changing tax rate from 45% from 40% won’t make any difference, other that giving chance to attract new investment and retain current one, which is very important long term.
And if you don’t like it then I’ll tell you more - decades of shifting taxation to the “well off” resulted in massive skew in budget financing, it’s at the maximum of milking that cow, the only way to increase taxes for common public services is to increase taxes on vast majority of residents - that’s the only way tax increases could be kept to a minimum (as it will fall on most people, not few).
That means instead of cutting main tax rate from 20% to 19% it should have gone up a few points (maybe even 25%), plus re-introduce 10% tax rate that existed under Gordon Brown, and/or get VAT to 25% over say 5 years. Now that would generate plenty of tax to keep lefties happy.
It’s about right economic policy, not me - as I said I’ll likely retire in 2024 or even before, because frankly I am tired with this tulipe.Comment
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Originally posted by AtW View Post
They (Cameron/Osborne/May/Boris) did not do it because it is politically difficult (as current outcry proves) and they cared more about optics than making right decisions for the economy. It’s a breath of fresh air that Truss is actually doing it.
In terms of energy poverty - that is result of decades of high taxes on North Sea rigs, changing tax rate from 45% from 40% won’t make any difference, other that giving chance to attract new investment and retain current one, which is very important long term.
And if you don’t like it then I’ll tell you more - decades of shifting taxation to the “well off” resulted in massive skew in budget financing, it’s at the maximum of milking that cow, the only way to increase taxes for common public services is to increase taxes on vast majority of residents - that’s the only way tax increases could be kept to a minimum (as it will fall on most people, not few).
That means instead of cutting main tax rate from 20% to 19% it should have gone up a few points (maybe even 25%), plus re-introduce 10% tax rate that existed under Gordon Brown, and/or get VAT to 25% over say 5 years. Now that would generate plenty of tax to keep lefties happy.
It’s about right economic policy, not me - as I said I’ll likely retire in 2024 or even before, because frankly I am tired with this tulipe.
Good for you though. Stick to your principles.
I am what I drink, and I'm a bitter manComment
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Originally posted by Whorty View PostYeah, I'm getting a bit tired of your ranting too ... but still you continue to think those earning over £150k are more deserving of a tax break than those who are on the bottom rung of the earnings scale.
Frankly max income tax level should not be more than 35%, and none od that scam that makes companies pay tax for employing local people, now tax on outsourcing abroad does make sense, but not what’s happening now.
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