pslewis

The Institute for Fiscal Studies (IFS) says that compared with the state of play when the coalition government took office four years ago, the higher-rate threshold has dropped by £4,910, creating an extra 1.1 million higher-rate taxpayers in the process.

There are now 4.4 million higher-rate taxpayers, and a further 313,000 who pay the 45% additional tax rate on top.

The Financial Times has estimated that if the higher-rate threshold had kept pace with the growth of wages over the past 36 years it would now kick in at an annual income of £75,700.

Everyone below that would still be paying tax at just 20%.

So, yes, I would still be paying 45% tax ..... but on a smaller slice.

Those on the 40% border salary are being hit very severly with a massive marginal rate of tax.

Hands up who will be kicking these millionaires out in May 2015 ... that should be most of you!!

ReallyReallyGoodMeat

The cynic in me thinks that future spending plans have been based on the assumption that this is the case, and so cannot move the tax boundaries very easily, without significant further cuts in public spending. Who's going to do that?

Graz

warrenm2

same with Labour and stamp duty thresholds on houses over the last decade. Fiscal drag is the technical term, its a supposedly more under the radar way of hiking tax take

neil-h

I've said it before and I'll say it again, the money required to fund the public sector has to come from somewhere.

jonc

What about the theft on pensioners by labour costing savers £100bn! Milli-***** are planning yet another raid on pensions if they get in power. They plan to slash the tax relief to 20% for high rate earners!

warrenm2

Yes, and given that the pips are squeaking, can we afford such a large public sector?

pslewis

Whilst I benefit hugely from Tax Relief at 45% ... why should I? Really?

Why should someone paying 20% Tax be refunded £20 per £100 used to buy a Pension - when someone paying 45% Tax be refunded £45 per £100?

It's actually not right and just.

Now, I would favour a straight 30% Tax rate for everyone ..... how ever much you earn, that's fair to those who have shown the ability and skill to earn top money.

f1_fan

iTrader: (9)

What are they doing with all this tax? The country is falling to bits, just look at the roads for example. Where the hell is it all going?

neil-h

Earn more pay more, earn less pay less. It's the way taxation tends to work. Similar to the welfare system, the more you pay in the less you tend to take out. Yes it's not fair but such is life.

pslewis

It should not matter what you earn - you should pay the same rate of tax IMO.

Then I would just get the basic rate of tax refunded too and not 45% from the public purse.

I wouldn't need an accountant to manipulate things ...... the result is that few people who earn serious money actually pay high taxes anyway - so abolish the top rate, and then the higher rate.

jonc

So whilst you highlight the "theft" by the Tories from 1.1 million workers paying high rate tax, you would advocate a 10% tax hike for the countless millions who are on the basic rate? Clearly you would do this for your own selfish needs to reduce your own tax bill! Sure you're not a closet Tory?

pslewis

It would only kick in gradually, and the point at which the 30% tax rate was payable would be raised substantially.

Rooney is probably one of the top 5 at the job he does, so he gets £300,000 a week ..... why should he pay 45% on that?

It penalises people who are the best at what they do - do we really want to do that?

ALi-B

iTrader: (1)

Has anyone told Pete we're all UKIP on here these days

pslewis

I'm voting UKIP in the EU Elections ........... scare the cr4p out of the millionaire Tories!

^Qwerty^

So we've not had a Labour government in 36 years then?

For your trolls, it's a pretty poor effort, more effort required. 2/10.

David Lock

Lewis just posts to show off his earnings (alleged).

dl

cster

And to show us how crap his accountant is

jonc

But it also penalises those who are paid a high salary but are crap at what they do, like your accountant for example.

SJ_Skyline

You're losing your touch Pedro

legb4rsk

Anything said,implied or promised by any party coming up to the election should be treated with even more suspicion than usual.

You have been warned.

wrx9181

iTrader: (2)

Problem is politicians are corrupt resent events showed this
But what did we all do . Did we remove them from government no
We did sweet f all.
They only plan for a term this can never be for the good of any country.
It's just who looks better on the news all bs
They do whatever they want and we just swallow the lot
What would are ancestors think of modern Brit

paulr

At one time he was quite subtle with it, not any more.