U-Turn incoming - 45% tax

BoroMart

Well-known member
Was it all a very clever charade? Headlining and focusing on cutting the upper rate - public outcry (rightly), than a u-turn - "we listened" and are putting the rate back up. In the meantime, the bankers and fund managers have and are making money on the market movements and their bonuses are no longer capped. - A classic create some temporary chaos and milk it to the max and pretend to be good listeners and put it right whist your mates wallets are bulging to burst.
no, it was arrogance. She's made a fool of herself to the public, made herself look cruel and dumb for saying she was happy to be unpopular, then u-turning on those unpopular decisions. She has also angered her MPs, and they will be emboldened against her, while many will want her out
 

changingman

Well-known member
The problem with this part of the "package" was that it made limited economic sense, and was therefore viewed as a political policy (which it clearly is).

I think the total revenue ascribed to this policy was around £5bn, small change when we're spending £150bn on revenue alone.

An unpopular policy which makes limited economic sense was (rightly) viewed as madness by other MPs.
 

Abel Tasman

Well-known member
The problem with this part of the "package" was that it made limited economic sense, and was therefore viewed as a political policy (which it clearly is).

I think the total revenue ascribed to this policy was around £5bn, small change when we're spending £150bn on revenue alone.

An unpopular policy which makes limited economic sense was (rightly) viewed as madness by other MPs.
A small part of the package but which everybody focussed on. Meanwhile the other unfunded massive tax cuts are still being viewed with dismay by the markets and therefore should be viewed with equal contempt.

Your market is down 1% yet again I see.
 

1finny

Well-known member
They listened….
But not to the noise on bankers bonuses

Incidentally Kwasi wouldn’t rule out further U turns this morning when pressed
 

Unravel_Morrison

Well-known member
A small part of the package but which everybody focussed on. Meanwhile the other unfunded massive tax cuts are still being viewed with dismay by the markets and therefore should be viewed with equal contempt.

Your market is down 1% yet again I see.
This is the point that people are missing this morning.

They've got rid of the part of the budget that 'the markets' weren't that concerned with; it was purely a political mistake.
 

jam69

Well-known member
Might be controversial but bankers and footballers aside , most people who earn above 150k will be on the 150-200k I guess . These will include doctors , surgeons , leaders of business who employ loads of staff, why should they pay 45%? They already pay massive amounts of tax and are expected to take on massive amounts of personal responsibility , accountability and liability , have likely spent years training … as a percentage based tax , and if I was a doctor working my a&se to help people I’d be thinking screw you I already pay tens of thousands …..
If your on say 180k it's 1500 a year you would have saved, unnecessary and immoral at a time your expecting the poorest to get by on less
 

TeessideCleveland

Well-known member
Throwing Kwarteng under the No 45 Bus yesterday Truss didn’t want to take any responsibility and in that moment her fate will be quickly decided. Gove wading in last night. A Government with no credibility whatsoever. Things collapsing very quickly.
A 'leader' that takes no responsibility is not a leader - she approved this
 

Nano

Well-known member
If your on say 180k it's 1500 a year you would have saved, unnecessary and immoral at a time your expecting the poorest to get by on less
This wasn't for people on £180k, it was for those on £1m+ who would have seen significant savings (that they obviously don't need). Just so far out of touch that it is ridculous.
 

FatFrank

Well-known member
Its the fact they have used the term "we get it, we have listened". A term I believe was also coined by Boris Johnson when his cabinet were also U-turning on a major **** up!
 

Capybara

Well-known member
A small part of the package but which everybody focussed on. Meanwhile the other unfunded massive tax cuts are still being viewed with dismay by the markets and therefore should be viewed with equal contempt.

Your market is down 1% yet again I see.
Indeed. Dead cat alert.
 

Laughing

Well-known member
The issue with the budget wasn't the 45% top rate of tax cut to 40%. It was the fact that not one of the tax cuts was funded. It was that the energy cap is essentially the government borrowing to maintain energy companies profits on the back of paye. It was removing banker bonuses caps risking another financial melt down as they gamble with our money.
 

Redwurzel

Well-known member
There are ways to pay less tax if you earn £150k/year for example set your self up as a limited company and pay yourself £12,670 as a PAYE director. With the profits of your company pay your self dividends as a share holder. Obviously some work you are not allowed to become self employed, but I read there are civil servants that have set themseleves as companies.

As an employee there is the EIS scheme where investments into gain 30% tax relief so 45% tax in effect becomes 15%.

Any income from ISAs are completely tax free, so put in £20k a year for 10 years, that £200k fund and then take off 7% interest gives a nice little £14k a year tax free.

You can also get at least 40% tax relief on £40k a year of pensions contributions.

People earning £150k to £200k and paying the income tax quoted in the media etc are in most cases not acting in their best finanacial interests.

Other wealthy living here say their income comes from abroad so like Sunak's wife (until very recently) they pay no direct taxes here.

We are not a high tax country for the wealthy if you know the right schemes which for obvious reasons are not broadcast.
 
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