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Rachel Reeves: People On £60K Income 'are Not Rich'

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Rachel Reeves: People on £60k income 'are not rich'

People earning as much as £60,000 a year are not "rich" and would not face tax increases under a Labour government, the shadow chief secretary to the Treasury said today.

In an interview with the Daily Telegraph, Rachel Reeves said:

I think the focus should be on those privileged few right at the top, and that’s not people earning £50,000 or £60,000 a year.

We don’t have any plans or desire to increase taxes amongst people in that band of income.

http://www.itv.com/news/story/2013-09-20/labour-conference-ed-miliband-2013/

Interesting. So I guess all parties will say no tax rises, and then either back track after the election or let it fall on further spending cuts pushed out into the future. The recovery will always be around the corner. I suppose eventually it will all catch up with us.

edit: removed

Edited by Ash4781

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http://www.itv.com/news/story/2013-09-20/labour-conference-ed-miliband-2013/

Interesting. So I guess all parties will say no tax rises, and then either back track after the election or let it fall on further spending cuts pushed out into the future. The recovery will always be around the corner. I suppose eventually it will all catch up with us.

edit: removed

Hmm, a £60k gross, two adult three teenage child household paying £3k per annum in council tax has an income greater than two thirds of the population.

Lose the children and a couple on £60k are better off than 85% of the population. If it's a single person household that percentage rises into the ninties.

Is Reeves's pronouncement not just another statement/consequence of recent galloping cost of living in the UK?

http://www.ifs.org.uk/wheredoyoufitin/

edit clarity/typos

Edited by The B.L.T.

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http://www.itv.com/n...-miliband-2013/

Interesting. So I guess all parties will say no tax rises, and then either back track after the election or let it fall on further spending cuts pushed out into the future. The recovery will always be around the corner. I suppose eventually it will all catch up with us.

edit: removed

yes; we will never tax houses/land, but we are happy to take away 40% if you earn above £42k pa

as we do not want people to work hard and smart; we want them instead to buy houses and earn less than £42k so they can also collect tax credits, child benefits and other perks ...

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Translates as 'I Rachel Reeves do not want to pay more income tax'.

The purpose of taxes is to raise revenue, so to be effective 'the many' must be taxed.....not 'the few'. This two faced nonsense of rebates, exceptions and allowances just costs more to administrate and therefore wastes money.

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The older I get, the more I am convinced that pre-tax income is in western societies more and more irrelevant to wealth. Assets = wealth.

If I can own a house with garden to live in and grow fruit and veg, retired, and I have an income of 15k, I am richer than someone on 60k renting and commuting.

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The older I get, the more I am convinced that pre-tax income is in western societies more and more irrelevant to wealth. Assets = wealth.

If I can own a house with garden to live in and grow fruit and veg, retired, and I have an income of 15k, I am richer than someone on 60k renting and commuting.

The way to be wealthy is to realise how little you need, and to stop acquiring when you reach that point.

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People on £60k income 'are not rich'

Tomorrow's news, People on £12k income 'are not poor'.

"we need to stop this idea that some people are better off than others. Remember, we're all in it together. Now get back to your foreign holidays / 9-5 job / bedroom tax eviction appeal* and be grateful for your lot"

*delete as appropriate

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People on £60k income 'are not rich'

Tomorrow's news, People on £12k income 'are not poor'.

"we need to stop this idea that some people are better off than others. Remember, we're all in it together. Now get back to your foreign holidays / 9-5 job / bedroom tax eviction appeal* and be grateful for your lot"

*delete as appropriate

Can't help wondering how you'd define 'rich' nowadays anyway. Oligarch billions? Someone with £100K net a year? Someone who can afford to fly first class whenever they like without even thinking about it?

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Can't help wondering how you'd define 'rich' nowadays anyway. Oligarch billions? Someone with £100K net a year? Someone who can afford to fly first class whenever they like without even thinking about it?

Someone who can afford to fly first class whenever they like but choose to fly economy

Edited by LiveinHope

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She is correct. Sixty thousand pounds is not what is once was. It's probably equivalent to about 30k in 2005. In 2005 Petrol was about 80p per liter and bread was about 80p a loaf. Now bread is about a pound fifty for a loaf and petrol is one pound forty per liter. In 2005 would you have said somebody who is paid 30 or 40 thousand pounds per year rich? Probably not.

It's true to say the people of Britain are now much poorer than they were a decade ago, but that is due to money printing and insanely low interest rates. People will be poorer still in five years time, when Carney has leached their salaries away with inflation.

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Well with fuel/food/energy etc at current prices even living alone I seriously struggle to keep my outgoings below 3k/month and 60K is only 3.5K take home.

Below 50K I cant see how anyone can survive without benefits/tax credits.

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Well with fuel/food/energy etc at current prices even living alone I seriously struggle to keep my outgoings below 3k/month and 60K is only 3.5K take home.

Below 50K I cant see how anyone can survive without benefits/tax credits.

That's the issue, benefits and tax credits all cease at £50-60k

On of my colleagues is on around £54k he has four kids and a wife who doesn't work but home schools (they live in the pennines miles from anywhere and suits them, anyway it saves the country a fortune in education fees) he was telling me recently that despite having only a small mortgage having bought ages ago, they are flat broke, holidaying with parents at the seaside, car an old banger given as a gift by a friend etc, growing their own food to safe money.

Contrast that with the lifestyle of someone not working at all with 4 kids, for which he pays 40% tax to feed and educate.

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