Anyway none of this will happen as people will get defensive about tax and earnings, too many voters are in the mid to upper range
Well higher tax band starts at 87th percentile roughly. This would mean that 13% of the voters would be in the upper range. Obviously does not include non working spouses etc.
There seems to be s generalisation that high income = Tory which may or may not be the case but if true these people will not have a realistic alternative. I mean they won’t go labour and Lib Dem are a cluster.
If there was a data driven analysis and then a plan formulated then there may be some grumbling but could be pushed through.
the current approach of throwing money around with no objectives or performance criteria/monitoring does no one any good.
When discussing taxes like this we really should stop using the word wealthy and use high income/earning instead as what we are talking about are taxes on income (in the case of pensions deferred income) not wealth. Actual wealth, i.e. assets, are actually relatively lightly. The highest marginal rate of Corporate Gains Tax in the UK is 28% and that is only in residential property otherwise it’s a maximum of 20%.
I was looking for the proportion of tax payers in each band and found this graph, which was interesting. It appears that the bottom 10% of earners do pay 20% of their income in tax (which is slightly more than the next 10%), but receive the equivalent of ~85% of it in benefits/welfare. obviously the value of a % increases the further right on the graph you go, so it's hard to understand the exact £ value of each block
And now the Met will be selling image rights to fund itself....
Something is very broken here, though I'm sure anyone who feels like paying extra tax can now buy a novelty copper
how do you get that?
Your referring to a different thing. You’ve quoted the average tax rate not the marginal. The figures you’ve used are useful for answering the question “how much tax do I pay” but not for answering the question if “I earn an extra £100 how much tax will I pay on that £100?” For that you need to know the marginal rate which is not just a function of tax rate but also changes in personal allowances and loss of benefits.
Both are useful numbers as long as they are used appropriately.
Fair do's but the marginal rate is only useful for 2 things, 1 deciding whether you can be arsed working to cream in any more. and 2 to sound like you are hard done by. It doesn't really have any benefit in the conversation. If you are earning 100k, stop waffling about your tax rate and thank your lucky stars.
Well it equally applies to those who will see their benefits being being reduced as a result of increased earnings or should they than their luck stats to no longer be needing as much of a handout?
It’s a very useful number.
If you are earning 100k, stop waffling about your tax rate and thank your lucky stars.
The only thing worse than paying higher rate tax is not paying higher rate tax.
There seems to be s generalisation that high income = Tory which may or may not be the case but if true these people will not have a realistic alternative. I mean they won’t go labour and Lib Dem are a cluster.
I'm not sure I follow that - why can't high earning people vote labour or lib dem? Just because someone earns a lot it doesn't necessarily follow they don't have a sense of social justice and/or don't support progressive taxation. Most of the high earners I know (being an ex consultant, I know quite a few) don't vote Tory and wouldn't in a million years - that may be because I have a selection bias I guess but still.
you can push some of that into your pension,
Assuming you pay £40k into your pension each year using salary sacrifice, you can defer the higher marginal tax rates till you earn £140k a year or over.
Only if your company doesn't also contribute anything...
