Quote:
Originally Posted by Ignitionnet
Hmmm.
http://www.telegraph.co.uk/news/news...ick-Clegg.html
http://www.telegraph.co.uk/news/news...help-poor.html
Add that to the Child Benefit cut and it'll hurt some people quite grievously.
It's 'progressive' but also strongly anti-growth. Typical Liberal Democrat policy actually 
Thoughts? Will anyone making around that sum notice the pain?
EDIT: This one could be phrased better but I largely agree - http://www.telegraph.co.uk/comment/c...stupidity.html
Shuffling money from one group to another isn't going to reboot the economy, increasing opportunities for everyone to keep more of their money and generate their wealth more easily will.
Calculating the impact all of this will have on this household it's far from inconsiderable, over 2,000 quid a year ignoring VAT rises, doesn't really make me feel overly motivated to go and work that bit more and make that bit more money when the government is eating 51% of a large proportion of it before I see it. |
Whats wrong with it.
If you move into the higher tax band, your entire salary doesnt suddenly get taxed at 40%, its just the little bit above the threshold. So as a % of earnings the pain felt by those affected by this is significantly less than the pain would be to lower earners for scrapping the 10k threshold. So its shifting a burden onto a part of society with more ability to pay it. I think the article you linked to which rambles on about productive people is an insult to low earners, as who is to say someone on 45k a year is more productive than someone on 10k a year?
Also those only right at the threshold will probably balance out anyway as they also get the higher no tax threshold.