ChatterBank19 mins ago
No Increase In Income Tax
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It appears that there will not be any increase in employees income tax. What will continue is the tax threshold to remain frozen. The latter being put in place by Sunak.
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"It appears that there will not be any increase in employees"
Of course there will be.
Freezing thresholds is every bit of a tax rise as increasing the rate. Imagine this (figures are for illustrative purposes only):
You earned £20,000 a year ten years ago. You were allowed £10,000 tax free and paid 20% on the rest. So you paid £2,000 in tax.
In the past ten years the only rises you received were linked to inflation. Inflation totalled 25% in that period so you now earn £25,000. But the tax free allowance has been frozen for all of that time, so you now pay 20% on £15,000 (£3,000).
So you have eranings with the same buying power as ten years ago, but your tax bill has increased by 50%.
This is why governments love it when they hear people say "But I was hopeless at maths." They can tell bare-faced lies and people who were "hopeless at maths" (i.e. they cannot do a few simple sums) believe them.
"They can tell bare-faced lies and people who were "hopeless at maths" (i.e. they cannot do a few simple sums) believe them."
Yeah but, no but, you can fool all of the people some of the time, and some of the people all of the time, but you can't fool all of the people all of the time.
In any case any tax that increases eventually gets passed to the consumers/citizens.
// .....not be any increase in employees income tax. //
we can't possibly know what that means until the word "employee" is properly defined, something all of the government talking heads have resolutely failed or refused to do this past week.
they can't even decide amogst themselves what the word "woman" means so I'm not holding my breath on this one either.
“11.57 The same old hat remark. With no input whatsoever on the op.”
I think it’s fairly common ground that the income tax thresholds will remain frozen. So with that in mind, to suggest that “…It appears that there will not be any increase in employees income tax” shows that little thought has been given to that, as I tried to illustrate @13:17.
“..we can't possibly know what that means until the word "employee" is properly defined, something all of the government talking heads have resolutely failed or refused to do this past week.”
I think the PM has been struggling more to define what the term “working people” means. He suggested at one point that only people who do not have a pot to pee in can be considered “working people” as he said one of the qualities of that group was that they must be unable to write out a cheque to address an unforeseen problem.” I think even the PM should be able to grasp that “employees” (at least as far as income tax is concerned) are people employed by an employer.
Will we get an actual definition of what a "working person" is in the budget? Despite the ham-fisted attempts so far, there isn't a definitive description, which I find surprising given even before the election they were referring to "working people".
Somebody on £200k a year will be paying about £85k in Tax and NI, and to earn £200k clearly that person would have to be good at their job and without question will be putting in long hours. By any objective measure this person is a "working person", or is it, as I strongly suspect, Labour only consider the low paid to be "working people", and by definition the well paid are not "working people".
They've tied themselves up in knots with this one.
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