Labour would re-introduce the 50p tax rate

[d000hg]

But they haven't made any statement about changing it so far? They'll have to choose a position to take as the election draws nearer.

[AtW]

But they haven't made any statement about changing it so far?

There is fairly clear statement that they'd do it, with Balls he isn't even saying if he'd put tax back to 45% or 40% after he magically produces budget proficit.

[Platypus]

they already reduced it and (I think) got away with it

seriously? No they didn't get away with it. Labour still bring it up at every opportunity and I've absolutely heard people taking about the cut and how it shows that Tories are elitist scum who only care about the rich.

[Mich the Tester]

seriously? No they didn't get away with it. Labour still bring it up at every opportunity and I've absolutely heard people taking about the cut and how it shows that Tories are elitist scum who only care about the rich.

They'd say that about the tories anyway. May as well let them whine and enjoy the tax cut.

[AtW]

What's interesting in all this 50% debacle is that very little is said about personal allowance robbed by Labour at the same time (before 50% tax band is even reached) - that I actually consider more unfair than higher tax, yet not even Osborne talks about changing this.

[Platypus]

What's interesting in all this 50% debacle is that very little is said about personal allowance robbed by Labour at the same time (before 50% tax band is even reached) - that I actually consider more unfair than higher tax, yet not even Osborne talks about changing this.

Explain.

The personal allowance has gone up massively since the coalition came to power, thanks to the Libs

[AtW]

Explain. The personal allowance has gone up massively since the coalition came to power, thanks to the Libs

Personal Allowance - If you were born before 6 April 1948 and your income is between £26,100 and £100,000

If your 'adjusted net income' - read more below - is over £26,100 (the income limit for higher allowances) but not more than £100,000, your higher Personal Allowance is reduced by half of the amount - £1 for every £2 - you have over the £26,100 limit, until the basic allowance is reached. So if, for example, you're born after 5 April 1938 but before 6 April 1948 and have income of £26,600 - £500 over the limit - your higher Personal Allowance is reduced by £250 to £10,250.

HM Revenue & Customs: Personal Allowance

So people on 40% tax rate with salary above 100k get shafted even more, totally wrong to remove personal allowance that should be available to all taxpayers.

[Platypus]

Ah. Thanks.

So people with the broadest shoulders are already paying more tax on more of their income.

What the mob don't seem to understand is how much more.

Bloody hell, Guardian link that explains this!
How many people pay the top rate of income tax? | News | theguardian.com

[AtW]

Ah. Thanks.

So people with the broadest shoulders are already paying more tax on more of their income.

What the mob don't seem to understand is how much more.

Everybody who pays tax most likely paying at high rate - 20% income + around 25% NI (inc employers) - so 45% tax on everybody who got half decent job.

Cons said they'd unify NICs and income tax which would have nice side effect of dealing with lots of tax dodges whose purpose is to shake off NICs. They said they'll create commission near end of Parliament, ffs - you got elected so do things, don't create meetings before next elections.

[d000hg]

Everybody who pays tax most likely paying at high rate - 20% income + around 25% NI (inc employers) - so 45% tax on everybody who got half decent job.

Are you deliberately mis-representing the figures to support your argument, or is this a genuine mistake?

Let's take a fairly experienced teacher (since I know what they earn and it's public record). On payscale point 6 you earn £31,500 which neatly fits your description of "half decent job" - by national standards this is a fairly decent salary for someone in their early 30s.

According to The Salary Calculator - 2013 / 2014 Tax Calculator on £31500 salary you would take home 77%, paying 14% on tax and 9% on NI.. Such a person is paying 23% in total 'tax' not 45% as you suggest.

And you can't include Employer's NI because this is not part of the salary to start with. Even if that was legitimate, you can't say someone on £31k salary is paying X% employer's NI on their salary unless you increase their salary to include that NI to start with.