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Cameron Tax Pledge: Tories Will Raise 40P Threshold To £50K


Damik

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HOLA441
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HOLA442

What will happen with NI bands?

Am I right in thinking NI is currently paid at 12% up until the top of the lower band - and then 2% thereafter?

So total tax and NI is 32% up to the top of the lower rate band followed by 42%?

Will NI at 12% be extended until £50,000? or will we have a dip in overall tax and NI for that area between roughly £40K and £50K?

Edited by oldsport
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HOLA443

Whoever voted 'no' would they care to explain their reasoning?

I can't see that less tax on income can ever be a bad thing. I personal would favour a flat rate of income tax at a low level (possible 18%, the same level as CG tax. That should stop people trying to avoid paying income tax and cut down of the number of accountants too!)

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HOLA444

Whoever voted 'no' would they care to explain their reasoning?

I can't see that less tax on income can ever be a bad thing. I personal would favour a flat rate of income tax at a low level (possible 18%, the same level as CG tax. That should stop people trying to avoid paying income tax and cut down of the number of accountants too!)

Aren't we all in it together? So when the 10 million poorest househoild are going to lose £1000 per year each it seems a bit rich to help those who are better off. Flat tax is neo-liberal ****** like the Laffer curve. I'd rather reduce the deficit.

Edited by oldsport
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HOLA445
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HOLA446

Aren't we all in it together?

I am confused how taking 40% cut from my earned money is "all in it together" ...

Can I come to your house and take 40% of your belongings ??? And I am ignoring NI, VAT and other stealth taxation ...

Edited by Damik
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HOLA447

I am confused how taking 40% cut from my earned money is "all in it together" ...

Can I come to your house and take 40% of your belongings ??? And I am ignoring NI, VAT and other stealth taxation ...

I think the reason you are confused is because you don't know the difference between taxation and theft.

Edited by oldsport
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HOLA448
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HOLA449

It doesn't matter since any spare after tax income will go straight into driving up rents and house prices. At least if it's taken off people as tax then it helps subdue property prices.

Until the system [tax, planning, rent] is reformed the higher taxes are the better.

Taxing middle class and throwing money at the lower class just increases the price floor. The one at the bottom will be always at the bottom. Supply/demand of goods and services will assure it. E.g. iPhone will be always priced to be expensive for the lower class, therefore they want it. In Australia minimal wage is about double of UK one, but rents are also double of UK one. There is nothing like a free lunch ...

Instead of government throwing money at the lower class they can:

- provide them with cheap building plots (and cancel housing benefit)

- provide them with school provided before and after childcare

- subsidised public transport

- food, energies, cloth, internet and mobile are relativelly cheap these days

- working tax credits for majority of working people is another joke policy, which will end in tears ...

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HOLA4410

.....There is no such thing as a free lunch.......in one hand out from the other.....what will they be spending this extra money in the pay slip on? employing cleaners, child minders and after school tutors?.....paying down debt or will it go towards higher purchase taxes, transport, private costs and fees....

They will be no free give-aways when our deficit and the countries debt is growing exponentially under any government you can name........all this is doing is tweaking around the edges...what we want to know is how people will in future pay for a roof over their heads, how they can secure a job that will be able to pay for that home and their family....providing a good education for ALL and good healthcare for ALL.

All this talk is minor adjustments that will mean little in the scheme of things. ;)

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HOLA4411

Not 100% sure about this, I'd probably prefer to see the personal allowance raised but that can be very expensive, my guess is that this is something that looks impressive but actually works out very cheap (assuming that the NIC upper limit follows as well).

Some very rough numbers:

20,000,000 workers x £1,000 increase in personal allowance x 32% tax (and NI) lost = £6,400,000,000.

2,000,000 higher earners x £8,000 increase in higher rate threshold x 8% tax lost = £1,280,000,000.

i.e. this sounds better than an extra £200 on the personal allowance.

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HOLA4412
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HOLA4413
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HOLA4414

It's to support the fecking housing market. Give those earning £40k plus a pay raise of a few thousand to spunk on house prices.

Where the hell does everyone think this money will end up?

It's another taxpayer bailout for the bankers.

Pump my bubble up Rippo

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HOLA4415
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HOLA4416
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HOLA4417

I'm not sure I like this move. Changing the thresholds supports this idea that around 40k a year is now a 'middle income'. Remember you're actually talking about only 15% or so of earners.

If houses were a sensible price and we hadn't done such a bad job controlling general inflation (or such a good job stoking it...) then higher rate taxpayers would still be very rich indeed.

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HOLA4418
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HOLA4419
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HOLA4420

I support the idea, but don't know why they mention teachers, police officers and nurses most of whom don't pay any net tax anyway.

Perhaps because they're vital for a healthy functional society?

Well... maybe not the police. They're glorified traffic wardens round my way.

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HOLA4421

But what about Austerity and bringing the deficit down ?

Or maybe we are just going to default.

This is a bribe to the electorate, most of whom are too daft to realize they will be losing it in tax credits changes anyway. It will also all go to the bankers to support house price rises.

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HOLA4422
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HOLA4423

Whoever voted 'no' would they care to explain their reasoning?

Wasn't me, but someone already posted one good reason before your post. Namely, the other half of income tax, branded "national insurance". They need to merge that in to honest tax before any of these pledges can be taken at face value.

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