Proposed new 45% tax bracket

I'm not sure, should people who are capable of earning a higher income be penalised?

Also I thought they were going to reduce the lower rate tax - in which case are there enough people who earn over 150k to make that work?

I'm not sure tbh. It seems like an awful lot of money to take away from someone without choice, it's almost half of what you've earnt after all, especially if its hard earnt cash. Guess it depends how much of the population fall into that tax bracket.

I'm not happy about it. I've never completely agreed with the tax brackets anyway but to take half of someones earnings over £150k away from them completely stinks in my opinion. They're already taxed heavily up to that point so why make it worse.

I don't feel I'm qualified to argue heavily about it though.

Plenty of countries have a far higher top rate of tax, so 45% is still quite moderate.

About 400,000 people will be affected, netting the treasury an extra £1.2 billion.

This is purely a token gesture, and will do little to offset the £12 billion revenue deficit caused by reducing VAT.

As for whether the rich should pay more, of course, but I'm a strong believer in "from each according to their means".

Hmmmm, this will affect H but we are both of the school of thought that it is only right that the more you earn, the more you should pay.

However, I am not sure that it is going to make any big difference and I know that H's accountant has already spoken to him and thinks he can probably creatively offset most of it in other areas anyway. That is almost directly opposed to our general view but the accountant is only doing his job and what he thinks best for his client.

I can't see how this VAT thing is going to make a jot of significant difference anyway and is mostly, a publicity excersise to promote the fact that the government is doing at least something.

People who earn that sort of money have the means to afford fairly creative accountants, and there's time yet for them to offset.

The VAT thing is stupid and won't do squat. The 2.5% is a piffling amount.

Exactly. Last night's news was giving a few examples.

Look, this TV set that used to be £150 will now be £147 !

I can just see the whole country rushing out to make the best of these once-in-a-lifetime bargains !

Thats another point actually P&aP. If a TV is currently £149.99 ( a standard price that we recognise), then technically, it should subsequently be on sale for £146.24 (If my maths is correct). What it will actually be on sale for is £146.99, thus making the 2.5% drop less than that and actually adding, albeit very marginally, to the profit margin for the retailer!

Its a load of nonsense that stimulates nothing but my contempt.

I've always been in favour of higher taxes for v high earners so it's fine with me. As someone else said, it's not that high compared with many other countries (for example, my husband pays 50% on the whole of his income- not marginal rate- and 21% vat, so it all seems low to us ?)

However, doing it now seems like a silly gesture designed to draw attention away from the fact we're going to have to have far more significant tax rises in future.