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Thread: 50% tax rate for high earners

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    50% tax rate for high earners

    Alistair Darling said the 50p tax rate replaces the planned 45p new top rate for those earning over 150,000 a year announced in November's pre-budget report and will kick in April 2010, a year earlier than planned

    The chancellor, Alistair Darling, today told the rich they faced a top tax rate of 50% as he sought to plug a record budget deficit and admitted the country would suffer this year as a result of the biggest contraction in its economy since the second world war.

    Presenting his new budget to parliament, Darling said the 50p tax rate replaces the planned 45p new top rate announced in November's pre-budget report and will kick in April 2010, a year earlier than planned. The new rate will only apply to the few earning over 150,000 a year, who will also see tax relief on their pension contributions curbed.
    Budget 2009: Rich face 50% top tax rate | UK news | guardian.co.uk

    BUDGET: KEY POINTS
    50% tax rate for earnings over 150,000
    Growth forecast revised down
    Borrowing increased
    15bn 'efficiency savings'
    2bn help for young unemployed
    1bn to boost housing market
    Car scrapping scheme


    Well, the rate should have always been higher for the rich but is this really the right time? :/
    Not to mention Cameron lit up Darling, it was so amusing to watch.
    Last edited by Laila; 04-22-09 at 10:14 AM.


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    Re: 50% tax rate for high earners

    Ok, thats around $218,000 American. So if I get this right that means that anyone earning that much or more in Britain will have their income taxed at 50%?

    What kind of deductions and credits do they have there? For example, what is the normal effective tax rate, is it much lower than the marginal rate? Also, what about that Value Added Tax, is that deductible from the income tax rate?
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    Re: 50% tax rate for high earners

    Quote Originally Posted by Laila View Post
    Well, the rate should have always been higher for the rich but is this really the right time? :/
    Not to mention Cameron lit up Darling, it was so amusing to watch.
    Amazing how those who know most what tax rates on "the rich" should be are never rich themselves.

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    Re: 50% tax rate for high earners

    Quote Originally Posted by celticlord View Post
    Amazing how those who know most what tax rates on "the rich" should be are never rich themselves.
    LOL
    I'm not rich, i'm a student.
    When i go into my field i'd be taxed 45%.


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    Re: 50% tax rate for high earners

    Quote Originally Posted by SouthernDemocrat View Post
    Ok, thats around $218,000 American. So if I get this right that means that anyone earning that much or more in Britain will have their income taxed at 50%?

    What kind of deductions and credits do they have there? For example, what is the normal effective tax rate, is it much lower than the marginal rate? Also, what about that Value Added Tax, is that deductible from the income tax rate?
    They will just have a increase of 5% tax on what they already pay - So pretty much from what i have understood of the prebudget report.
    Keep in mind it may not pass as the Conservatives [who are opposed to tax rises] may vote against it.

    The VAT tax has been cut a few times by Labour so i have no idea sorry.
    I'll try and find out for you.


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    Re: 50% tax rate for high earners

    At-a-glance: Budget 2009

    CIGARETTES, ALCOHOL AND FUEL
    Alcohol taxes to go up 2% from midnight - putting the price of the average pint up 1p

    Tax on tobacco to go up by 2% from 6pm - equivalent to an extra 7p on a pack of 20 cigarettes

    Fuel duty to rise by 2p per litre from September, then by 1p a litre above indexation each April for the next four years

    My cigarettes are being taxed some more ... AGAIN
    Last edited by Laila; 04-22-09 at 10:46 AM.


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    Re: 50% tax rate for high earners

    Quote Originally Posted by Laila View Post
    LOL
    I'm not rich, i'm a student.
    You're not rich? Wow, what a shock!

    Quote Originally Posted by Laila View Post
    When i go into my field i'd be taxed 45%.
    And you're ok with forking over half your money to someone else (besides your spouse) to spend however they please?

    Suddenly your approval of piracy seems not so strange.

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    Re: 50% tax rate for high earners

    Quote Originally Posted by celticlord View Post
    You're not rich? Wow, what a shock!

    And you're ok with forking over half your money to someone else (besides your spouse) to spend however they please?

    Suddenly your approval of piracy seems not so strange.
    I have no problem with it. I'd have no problem with 50% either.

    My elder brother will be taxed 50% starting next year if this passes. He can't bitch because he spends money from the NHS and Education system as well.


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    Re: 50% tax rate for high earners

    Quote Originally Posted by Laila View Post
    They will just have a increase of 5% tax on what they already pay - So pretty much from what i have understood of the prebudget report.
    Keep in mind it may not pass as the Conservatives [who are opposed to tax rises] may vote against it.

    The VAT tax has been cut a few times by Labour so i have no idea sorry.
    I'll try and find out for you.
    The reason why I ask is that if your effective tax rates are fairly close to your marginal rates there, then someone's total tax rate at that income level and higher could be 60% (insanely high)

    Of course, if you have the kind of deductions / credits that we have here, then the effective tax rate would be much lower, and the problem would be more of an economically inefficient tax code than it would be an insanely high rate of taxation.
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    Re: 50% tax rate for high earners

    Quote Originally Posted by Laila View Post
    I have no problem with it. I'd have no problem with 50% either.
    Really. What about 100%? Let the government take everything and just give you what the bureaucrats say you need?

    Quote Originally Posted by Laila View Post
    My elder brother will be taxed 50% starting next year if this passes. He can't bitch because he spends money from the NHS and Education system as well.
    That's his choice. Of course, if he paid less in tax, he might not need to spend so much of supposedly government money. Makes the argument rather circular and wholly invalid.

    Unless he's spending more government money than he's paying in tax, in which case the net effect is a wealth transfer to him.

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