Starmer's vision quest

[Bazzer]

According to Google, the highest rate has been as high as 94%, in the period since 1945, but, as I said elsewhere, I never reached such earnings heights, in the relevant period, so, I don't recall it..

Another factor IMHO if talking of Income Tax is EE NI, this, to all intents and purposes is an income tax, in addition to what is referred to as Income Tax.

There is also of course the "indirect" taxes, very difficult to work out a meaningful figure, I suppose, but, if we take into account Insurance premium tax, council tax, fuel duty, VAT etc etc, what % of an average earners income goes to the Government?

A higher rate of income tax may have been imposed prior to the 1970's, but there appeared to be a bit of a fixation with the tax rates of the period. Yes they were extremely high for some and large numbers of those taxpayers found ways around of not paying what the Government intended. But a simple comparison of rates misses completely underlying information.

 

[BoldonLad]

A higher rate of income tax may have been imposed prior to the 1970's, but there appeared to be (1) a bit of a fixation with the tax rates of the period. Yes they were extremely high for some and (2) large numbers of those taxpayers found ways around of not paying what the Government intended. (3) But a simple comparison of rates misses completely underlying information.

(1) Don't think it is a fixation, simply referring back to a period of poor performance of the economy, and, Government (both Labour and Conservative) tax policies at the time.

(2) Which supports the observation that high tax rates lead to increased avoidance.

(3) I don't disagree that simple comparisons are not meaningful, there are other factors to consider, not least of which are allowances, and benefits in kind, which you have mentioned.

 

[Ian H]

You mention 99%, but as I recall, when they reached peak leftiebollox in the 70's the top rate of income tax was 82% and there was a 15% surcharge for unearned income, making the top rate 98%. They then wondered why people were ****ing off and why they needed a bail out. I'm not suggesting that the current lot will go that far, but just goes to show when it comes to tax that lefties don't learn 🙂

Here's a more financially literate explanation.
The 1976 sterling crisis was a currency crisis in the United Kingdom. Inflation (at close to 25% in 1975, causing high bond yields and borrowing costs), a balance-of-payments deficit, a public-spending deficit, and the 1973 oil crisis were contributors.[1]

The origins of the crisis have been attributed to the 1972 Conservative "spend for growth" budget initiating the inflation cycle.
https://en.wikipedia.org/wiki/1976_sterling_crisis

 

[Pblakeney]

A case for Regional Income tax, or, a case to move house? 😂

Nah. It's a choice of prime postcode and less cash or less desirable postcode and loads of money.
You takes your pick of image or substance.

 

[Stevo 666]

Here's a more financially literate explanation.
The 1976 sterling crisis was a currency crisis in the United Kingdom. Inflation (at close to 25% in 1975, causing high bond yields and borrowing costs), a balance-of-payments deficit, a public-spending deficit, and the 1973 oil crisis were contributors.[1]

The origins of the crisis have been attributed to the 1972 Conservative "spend for growth" budget initiating the inflation cycle.
https://en.wikipedia.org/wiki/1976_sterling_crisis

A more financially literate explanation for what, exactly?

 

[BoldonLad]

From Labour's 2024 Manifesto (https://labour.org.uk/change/strong-foundations/)

The commitment is "Labour will not increase taxes on working people" next bit clarifies the commitment being the reason for other intended stuff.

To my mind freezing the income tax threshold would be increase taxes on working people.

Now they're trying to weazel out of it with eg"we said we wouldn't raise the headline rate ..." ... no, they said "Labour will not increase taxes on working people.

Ian

Does the “working people” promise exclude other tax increases, on items which “working people” buy or have to pay including for example council tax.

 

[Stevo 666]

Does the “working people” promise exclude other tax increases, on items which “working people” buy or have to pay including for example council tax.

It probably depends on what definition Labour is using of 'working people' on any particular day.