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How 750,000 People Will Be Dragged Into Paying 40% Income Tax... And Families With Children Will Bear The Brunt

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http://www.dailymail.co.uk/news/article-1352071/How-750-000-people-dragged-paying-higher-rate-tax--families-children-the-brunt.html

Families with children will be hardest hit by the Government’s tax and benefit changes, a major report reveals today.

And at least 750,000 people will be dragged into paying the higher rate of income tax.

The report from the Institute for Fiscal Studies also says marginal tax rates – the amount lost in tax and withdrawn benefits as people earn more – will increase for more than 22million people from April.

Some basic rate taxpayers will lose 73p in every extra pound they earn as they pay more in tax and National Insurance and tax credits are withdrawn.

A small number of higher-rate taxpayers will lose 83p in every extra pound.

Families with children at almost every point of the income scale will be harder hit than pensioners or workers without children, the report says.

The top 10 per cent of earners with children – those on around £45,000 or more – will lose 4 per cent of their income, compared with 3 per cent for households without children and 1 per cent for pensioners.

The threshold at which the 40 per cent rate of income tax kicks in will fall from £37,400 to £35,001, affecting huge numbers who are currently basic rate taxpayers.

An increase of £1,000 in the amount people can earn tax-free, to £7,475, will help the less well-off, and Chancellor George Osborne is thought to be considering raising this by a further £500 in his March Budget.

Considering what's happening with food and fuel inflation an increase of £1000 in your personal allowance won't go far for the lower paid without children.

Bend over and take it, the bankers need their bailout.

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Rising living costs will break the back of the economy just as sure as the debt bubble, especially in combination wth tax rises (across the board apart from a few exceptions).

http://www.guardian.co.uk/money/2011/jan/31/third-of-brits-credit-card-january

Third of Brits relied on credit card for January spending, says Post Office

Report says more than 11.5 million people used their credit card for day-to-day living – a sign of financial distress to lenders

A customer browses for products at a Tesco supermarket in London A customer browses for products at a Tesco supermarket. Photograph: Simon Dawson/Bloomberg via Getty Images

More than 11.5 million people (34% of credit card holders) spent January relying on their credit cards to fund day-to-day living costs, according to research by the Post Office.

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http://www.dailymail.co.uk/news/article-1352071/How-750-000-people-dragged-paying-higher-rate-tax--families-children-the-brunt.html

Considering what's happening with food and fuel inflation an increase of £1000 in your personal allowance won't go far for the lower paid without children.

Bend over and take it, the bankers need their bailout.

I'm going to be facing a marginal tax rate in excess of 100% when child benefit is cut to higher rate taxpayers. So far, counting tax credits, child benefit and tuition fees, I've had the same hit as if the basic rate of tax were put up by about 12p in the pound.

But at least I can rest assured that the Coalition has the right priorities, such as getting rid of the 50p rate.

The scary thing is that under Labour, redistribution via tax credits amongst other things put a bit of a brake on the growing inequality in the UK (there may have been better ways to go about it); the ConDems are setting about this with an axe. Given that poor people tend to spend money and rich hoard it, this will directly hit consumer spending.

And then we act surprised when the economy shrinks..

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When interest rates start creeping up as well it could start to get very nasty.

Report says more than 11.5 million people used their credit card for day-to-day living – a sign of financial distress to lenders

I don't quite understand this point. I've used my credit card for day to day living for years because it's the logical thing to do. If the card gets compromised my bank balance doesn't get cleared out, unlike a debit card. I get airmiles. And my money stays in my savings account for that bit longer.

As long as you clear your balance each month I think it makes much more sense to use a credit rather than a debit card...

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I'm going to be facing a marginal tax rate in excess of 100% when child benefit is cut to higher rate taxpayers. So far, counting tax credits, child benefit and tuition fees, I've had the same hit as if the basic rate of tax were put up by about 12p in the pound.

But at least I can rest assured that the Coalition has the right priorities, such as getting rid of the 50p rate.

The scary thing is that under Labour, redistribution via tax credits amongst other things put a bit of a brake on the growing inequality in the UK (there may have been better ways to go about it); the ConDems are setting about this with an axe. Given that poor people tend to spend money and rich hoard it, this will directly hit consumer spending.

And then we act surprised when the economy shrinks..

are you taking the pish, look at any Gini data inequality has consistently grown for the last 30 years going exponential along with the debt since labour have been in, Child tax credits and all the rest went straight into property prices making it worse, im pretty sure banks were including it within mortgage payment affordability

Edited by Tamara De Lempicka

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I'm going to be facing a marginal tax rate in excess of 100% when child benefit is cut to higher rate taxpayers. So far, counting tax credits, child benefit and tuition fees, I've had the same hit as if the basic rate of tax were put up by about 12p in the pound.

But at least I can rest assured that the Coalition has the right priorities, such as getting rid of the 50p rate.

The scary thing is that under Labour, redistribution via tax credits amongst other things put a bit of a brake on the growing inequality in the UK (there may have been better ways to go about it); the ConDems are setting about this with an axe. Given that poor people tend to spend money and rich hoard it, this will directly hit consumer spending.

And then we act surprised when the economy shrinks..

Clearly it would make more sense to give these people more money to get the economy moving.

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are you taking the pish, look at any Gini data inequality has consistently grown for the last 30 years going exponential along with the debt since labour have been in, Child tax credits and all the rest went straight into property prices making it worse, im pretty sure banks were including it within mortgage payment affordability

+1

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Looks like many people are going to need a payrise to cover this loss of income. Here comes the wage led inflation, now thats the inflation the BoE are scared of. Higher interest rates to follow.

Yay for the bankers!

But remember, Osborne says we have to move on from bashing the banks. Yeah right, lets do that.

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A colleague at work of mine (with two young kids) is doing all he can in order to keep him under the new Child Benefit and Child Tax Credits thresholds. Buying holiday and increasing AVC's etc etc. He'll get the same money, just work less hours. Oh, and guess who will be relied upon to pick up the slack, yup, the single people with no kids.

The law of unintended consequences and all that. dry.gif

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are you taking the pish, look at any Gini data inequality has consistently grown for the last 30 years going exponential along with the debt since labour have been in, Child tax credits and all the rest went straight into property prices making it worse, im pretty sure banks were including it within mortgage payment affordability

I can remember when we moved the advisor was asking about tax credits etc... all to help us borrow more money, needless to say I didn't take him up on the offer of maxing ourselves out.

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are you taking the pish, look at any Gini data inequality has consistently grown for the last 30 years going exponential along with the debt since labour have been in, Child tax credits and all the rest went straight into property prices making it worse, im pretty sure banks were including it within mortgage payment affordability

The halifax certainly did.

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Raising taxes has always resulted in less productivity. The same old mistakes over and over again.

What with trying to sell of our forests to private owners, closing local POs, feathering the nests of the banksters I can see this Koalishon having a hard time lasting much beyond Christmas of this year. I am totally dissolusioned with them and may go UKIP next time.

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I'm going to be facing a marginal tax rate in excess of 100% when child benefit is cut to higher rate taxpayers. So far, counting tax credits, child benefit and tuition fees, I've had the same hit as if the basic rate of tax were put up by about 12p in the pound.

But at least I can rest assured that the Coalition has the right priorities, such as getting rid of the 50p rate.

The scary thing is that under Labour, redistribution via tax credits amongst other things put a bit of a brake on the growing inequality in the UK (there may have been better ways to go about it); the ConDems are setting about this with an axe. Given that poor people tend to spend money and rich hoard it, this will directly hit consumer spending.

And then we act surprised when the economy shrinks..

We obviously need more carbon and green taxes to boost the economy , it worked for Spain... :lol:

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Rising living costs will break the back of the economy just as sure as the debt bubble, especially in combination wth tax rises (across the board apart from a few exceptions).

http://www.guardian.co.uk/money/2011/jan/31/third-of-brits-credit-card-january

Third of Brits relied on credit card for January spending, says Post Office

Report says more than 11.5 million people used their credit card for day-to-day living – a sign of financial distress to lenders

A customer browses for products at a Tesco supermarket in London A customer browses for products at a Tesco supermarket. Photograph: Simon Dawson/Bloomberg via Getty Images

More than 11.5 million people (34% of credit card holders) spent January relying on their credit cards to fund day-to-day living costs, according to research by the Post Office.

I use my credit card for virtually everything and repay at the end of the month; one payment instead of 20. Am I alone? I suspect not. Is this a sign of financial distress or people using cc like me?

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I'm going to be facing a marginal tax rate in excess of 100% when child benefit is cut to higher rate taxpayers. So far, counting tax credits, child benefit and tuition fees, I've had the same hit as if the basic rate of tax were put up by about 12p in the pound.

But at least I can rest assured that the Coalition has the right priorities, such as getting rid of the 50p rate.

The scary thing is that under Labour, redistribution via tax credits amongst other things put a bit of a brake on the growing inequality in the UK (there may have been better ways to go about it); the ConDems are setting about this with an axe. Given that poor people tend to spend money and rich hoard it, this will directly hit consumer spending.

And then we act surprised when the economy shrinks..

Have you got a pension?

http://www.thisismoney.co.uk/pensions/ask-an-expert/article.html?in_article_id=515890&in_page_id=138

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I use my credit card for virtually everything and repay at the end of the month; one payment instead of 20. Am I alone? I suspect not. Is this a sign of financial distress or people using cc like me?

Same for me. Might as well collect those "rewards", provided there's no extra cost to me.

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http://www.dailymail.co.uk/news/article-1352071/How-750-000-people-dragged-paying-higher-rate-tax--families-children-the-brunt.html

Considering what's happening with food and fuel inflation an increase of £1000 in your personal allowance won't go far for the lower paid without children.

Bend over and take it, the bankers need their bailout.

Another angle:

http://www.heraldscotland.com:80/news/home-news/750-000-to-pay-higher-rate-of-tax-1.1082683

“We calculate that a further 850,000 would be brought into this higher rate bracket by 2014-15 if the Government reaches its ambition of a £10,000 allowance in the same way.”

Moving towards 40% as the de facto standard rate?

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I'd been having the same thought. Still at least aggregate demand is going to be strong.

i think in any other country that would be a problem but you get such stonkingly good value for it in the UK that its still a great deal

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As unemployment increases and the pool of workers in which to collect income tax decreases, the 50pc tax may be extended down to 100k.

Then the Conservatives will blame the Lib Dems. and say they had to make concessions for them at some point...

Meanwhile, I bet corporation tax is in for another cut.

Can someone explain to me how decreasing corporation tax but increasing individual income tax HELPS an economy?

Edited by mel in w9

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Raising taxes has always resulted in less productivity. The same old mistakes over and over again.

What with trying to sell of our forests to private owners, closing local POs, feathering the nests of the banksters I can see this Koalishon having a hard time lasting much beyond Christmas of this year. I am totally dissolusioned with them and may go UKIP next time.

RB,

those pension promises have to be paid. Well some say that they do, I would renege if I were the boss.

In order to be able to attempt to pay those pension promises, you need to tax at a higher rate than the economy can take. Over time, more and more people will find that they can make more money outside of the taxed sector, and more will do what they can to claim beneifts.

I am also struggling to identify any changes of note that will reducing overall spending.

Let us see what happens to that deficit, I expect it to keep on blowing out.

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We obviously need more carbon and green taxes to boost the economy , it worked for Spain... :lol:

You mean the bit where feed-in-tarriffs were so high that the owners of solar panels in Spain could make a profit by using mains electricity at night to shine lights on them?

More seriously, I've NEVER advocated carbon taxes.. I would suggest, however, that a Keynesian program to move to a all-Nuclear electric grid, combined with appropriate investments in breeder reactor technology and synthetic fuels, would boost the economy. Although I'm sure that a myriad of 'consultants' and financiers would manage to screw it up..

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You mean the bit where feed-in-tarriffs were so high that the owners of solar panels in Spain could make a profit by using mains electricity at night to shine lights on them?

More seriously, I've NEVER advocated carbon taxes.. I would suggest, however, that a Keynesian program to move to a all-Nuclear electric grid, combined with appropriate investments in breeder reactor technology and synthetic fuels, would boost the economy. Although I'm sure that a myriad of 'consultants' and financiers would manage to screw it up..

excellent, which surplus are you going to be using for this Keynesian Program may i ask?

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I'm going to be facing a marginal tax rate in excess of 100% when child benefit is cut to higher rate taxpayers. So far, counting tax credits, child benefit and tuition fees, I've had the same hit as if the basic rate of tax were put up by about 12p in the pound.

But at least I can rest assured that the Coalition has the right priorities, such as getting rid of the 50p rate.

The scary thing is that under Labour, redistribution via tax credits amongst other things put a bit of a brake on the growing inequality in the UK (there may have been better ways to go about it); the ConDems are setting about this with an axe. Given that poor people tend to spend money and rich hoard it, this will directly hit consumer spending.

And then we act surprised when the economy shrinks..

So you are rich enough to be a higher rate tax payer but you want me (on less than half of your salary) to pay for your kids through my taxes?

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  • 312 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



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