Something I largely approve of

[andrewducker]

750,000 more people are about to pay the higher rate of tax, because the limit has dropped from £37k to £35k*.

Meanwhile, 500,000 low-income people are about to stop paying tax altogether, with the bottom limit changed from £6.5k to £7.5k.

The IFS estimates that the richest 10% of people will lose 3% of their net income from April 6, compared with a 1% loss for the population as a whole.

Those with the highest incomes have already been hit by the new 50% tax rate for people earning more than £150,000 and the loss of the personal tax allowance for those on more than £100,000.

* That's not including the tax-free allowance, but it still drops more people into paying higher-rate tax.

Comments

[hawkida.livejournal.com]

I think it'll leave me better off - I am close to the new border of paying the top rate, but not quite there, so presumably I'll just get the benefit of bottom end changing.

I wonder how they figure out the average household where they say what they believe the overall effect will be.

[andrewducker]

According to the BBC, people earning up to £35k are better off.
http://www.bbc.co.uk/news/business-12321524

[channelpenguin.livejournal.com]

Doesn't sound very Tory....

Not to be prying in any detail, but does new limit affect you personally? If so, I am impressed by the strength of your convictions in still being pleased/approving. Yer a saint....

[andrewducker]

I'm a little short of that at the moment - but I don't expect to be for a great deal longer (I keep getting hints from above about a promotion). I hope to be paying 40% within the year...

[andrewducker]

Oh, and raising the exemption to £10k was in the Lib Dem manifesto. On the grounds that it doesn't make any sense to be taking taxes off of people and then giving them back in benefits, you're better off just not taxing people at all until they hit "the living wage". It's getting phased in in chunks, hopefully.

[pete stevens (from livejournal.com)]

I'm in favour and I'm definitely affected. I'd like to set the lower rate threshold to be 35 hours/week x minimum wage.

I think that shifting the tax system to reward low earners & pensioners even at the expense of higher earners isn't a particularly anti-Tory policy. Anything that rewards people for working (and in particular rewards people for shifting from non-working to working) usually goes down well.

[andrewducker]

Oddly, by raising the threshhold to £10k that's pretty much _exactly_ what the Lib Dems propose.

Minimum wage of £5.93x35x52=£10,792.60

[matgb]

I'd like to set the lower rate threshold to be 35 hours/week x minimum wage

There's a very good chance that the next Lib Dem manifesto will have a policy very similar to that. I hope so anyway, it's definitely being worked on in the background.

[lizw.livejournal.com]

I am also affected - to the extent that it looks as if a recent promotion may leave me worse rather than better off - and still in favour.

[ashfae.livejournal.com]

I approve this too. It's good to hear about something that will actually help happening, for a change.