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50% tax rate for high earners

Laila

Laila

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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.
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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.
 
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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?
 
Laila said:
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.
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Amazing how those who know most what tax rates on "the rich" should be are never rich themselves.
 
celticlord said:
Amazing how those who know most what tax rates on "the rich" should be are never rich themselves.
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LOL
I'm not rich, i'm a student.
When i go into my field i'd be taxed 45%.
 
SouthernDemocrat said:
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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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.
 
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 :boohoo:
 
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Laila said:
LOL
I'm not rich, i'm a student.
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You're not rich? Wow, what a shock!

Laila said:
When i go into my field i'd be taxed 45%.
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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.
 
celticlord said:
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.
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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.
 
Laila said:
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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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.
 
Laila said:
I have no problem with it. I'd have no problem with 50% either.
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Really. What about 100%? Let the government take everything and just give you what the bureaucrats say you need?

Laila said:
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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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.
 
celticlord said:
Really. What about 100%? Let the government take everything and just give you what the bureaucrats say you need?
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I get NHS. You don't.
I have reason to want to pay more money as i get something out of it.
What do you get out of paying taxes to your Government?
 
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celticlord said:
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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In theory, it should be a wealth transfer from him when he is younger (less health issues, no retirement income), and a wealth transfer to him when he is older (more health issues, drawing some form of social security). Few nations have transfers of wealth from rich to middle class. Instead, its usually a wealth transfer between generations.
 
Laila said:
What do you get out of paying taxes to your Government?
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Not a damn thing. Being a man with a backbone and this little thing called pride, I prefer doing for myself.
 
SouthernDemocrat said:
In theory, it should be a wealth transfer from him when he is younger (less health issues, no retirement income), and a wealth transfer to him when he is older (more health issues, drawing some form of social security). Few nations have transfers of wealth from rich to middle class. Instead, its usually a wealth transfer between generations.
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In theory, theory and reality are the same.

In reality, theory and reality are different.

In reality, taxes are taking from everybody and giving to parasites.

"Wealth transfer between generations"....isn't that called "inheritance"?
 
celticlord said:
In theory, theory and reality are the same.

In reality, theory and reality are different.

In reality, taxes are taking from everybody and giving to parasites.

"Wealth transfer between generations"....isn't that called "inheritance"?
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We are talking reality here. In reality, you pay more in taxes when you are younger say, 30s, 40s and 50s, and less in taxes when you are older, 60s and up.

Yet, when you are older, you are drawing Social Security and Medicare. Thus, there is a transfer of wealth going on from younger to older. Very little wealth transfers occur through taxation between rich and poor. After all, welfare programs only constitute a small portion of federal outlays. The big ones are defense and entitlements.
 
celticlord said:
Not a damn thing. Being a man with a backbone and this little thing called pride, I prefer doing for myself.
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Your roads are paved, your air and water is largely protected (less so there in Houston), your bank accounts are insured, the police patrol your neighborhoods, the government defends the nation, you have parks to go to.... You get a lot of services for your tax dollars.
 
Laila said:
I get NHS. You don't.
I have reason to want to pay more money as i get something out of it.
What do you get out of paying taxes to your Government?
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Tax revenue as a percentage of GDP is 36.6% in the U.K.

It is 28.3% in the USA. (These numbers are for combined taxation for all levels of government).

So, would that fairly significant reduction in taxation be worth it to you in exchange for having the largely employer sponsored health care plans and student loan programs we have in the United States rather than the nationalized health care and government funded higher education in the U.K.?

Keep in mind that you would still have publicly funded health care once you reached retirement, would have public health care if you were impoverished or disabled, and would have access to grants for college if you were poor.
 
SouthernDemocrat said:
Your roads are paved, your air and water is largely protected (less so there in Houston), your bank accounts are insured, the police patrol your neighborhoods, the government defends the nation, you have parks to go to.... You get a lot of services for your tax dollars.
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And how much of government spending goes to these things?

And how much goes to handouts and giveaways to special interests?

The list you cited...those comprise the entirety of the things government does tolerably well (ok, drop of the police patrolling....police are a disservice to every neighborhood). Which means that no, I do not get "a lot of services." for my tax dollars. I get practically no service at all.
 
Laila said:
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.
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The rate should not be higher but the rich don't pay too much in taxes anyway, so it doesn't mean much. The rich can avoid their taxes to a large degree, the rest tend to get the biggest burden.
 
celticlord said:
And how much of government spending goes to these things?

And how much goes to handouts and giveaways to special interests?
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About 60% of federal spending goes to entitlement/welfare programs.
 
celticlord said:
And how much of government spending goes to these things?

And how much goes to handouts and giveaways to special interests?

The list you cited...those comprise the entirety of the things government does tolerably well (ok, drop of the police patrolling....police are a disservice to every neighborhood). Which means that no, I do not get "a lot of services." for my tax dollars. I get practically no service at all.
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Until you retire, at which time you will get Medicare and Social Security, and you kids will then be complaining about how they get no services from the government. ;)
 
SouthernDemocrat said:
Until you retire, at which time you will get Medicare and Social Security, and you kids will then be complaining about how they get no services from the government. ;)
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Ok, so if I tell you to keep your medicare and social security, I can keep my taxes, right?
 
celticlord said:
Ok, so if I tell you to keep your medicare and social security, I can keep my taxes, right?
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All you have to do is convince enough voters to share your view, and you can get it repealed.
 
Laila said:
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.
Click to expand...

Holy **** 50%! Only a liberal can justify metaphorically raping someone in the ass with a unfair and unjust tax rate. This is why there should be a flat tax rate and no deductions. This idea that you be should be gouged just because you work harder and earn more is a load of crap.
 
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