3 ms·

for some value of "usually" corporation tax: 30% in 2008, 19% in 2018 zero rate band of income tax: £3000 in 1990, £11850 today (the increase is more than dou

for some value of "usually" corporation tax: 30% in 2008, 19% in 2018 zero rate band of income tax: £3000 in 1990, £11850 today (the increase is more than double that of inflation)

rwmj 8y ago
Personal allowance (zero tax band) raised to £12,500 from April (in the Budget today). This gives money to richer voters because the higher your earnings, the more tax saved. But corporation tax takes money from rather anonymous entities, which of course affects voters too in the end but in a rather indirect way.
- blibble 8y ago
  > This gives money to richer voters because the higher your earnings, the more tax saved. a rise of the zero rate equally effects anyone earning above the new zero rate threshold (regardless of how much they are above it [1]) a full time minimum wage employee earning ~£14,000/year gets exactly the same reduction in tax from this specific increase as an engineer on £90,000/year [1]: once you get above £100,000/year your personal allowance goes down (ultimately to zero)
  - coob 8y ago
    The engineer on £90k got an additional £730 tax cut with the 40% threshold moving from £46,350 to £50,000.
  - rwmj 8y ago
    The Resolution Foundation disagrees: https://twitter.com/resfoundation/status/1056969156741029889 https://twitter.com/resfoundation/status/1056969156741029889 However I agree that anyone earning over £100K won't be affected because of the peculiar system where you lose the personal allowance in steps over this threshold.
    - blibble 8y ago
      they don't disagree, your point was: > Personal allowance (zero tax band) raised to £12,500 from April (in the Budget today). This gives money to richer voters because the higher your earnings, the more tax saved. the conclusion of which is factually incorrect, and unsupported by your linked chart (which includes more than just the increase in the zero rated band)
      - rwmj 8y ago
        What's the mechanism which is causing a benefit from the 1st and 2nd (the very poorest) groups in that graph, which is caused by adjusting a threshold at £50,000?
        deleted 8y ago
        [deleted]
  - cjrp 8y ago
    But raising the zero rate means someone earning >£50k has less of their income taxed under the higher rate (40%).
- mFixman 8y ago
  You lose your personal allowance half a percentage point for every pound you earn over £100k. People who earn £125k get 0 of the basic rate. The fun thing is that total marginal income tax between those two numbers is 60% without counting national insurance.
  - IkmoIkmo 8y ago
    > The fun thing is that total marginal income tax between those two numbers is 60% without counting national insurance. Could you elaborate?

for some value of "usually" corporation tax: 30% in 2008, 19% in 2018 zero rate band of income tax: £3000 in 1990, £11850 today (the increase is more than double that of inflation)

rwmj 8y ago

Personal allowance (zero tax band) raised to £12,500 from April (in the Budget today). This gives money to richer voters because the higher your earnings, the more tax saved. But corporation tax takes money from rather anonymous entities, which of course affects voters too in the end but in a rather indirect way.

blibble 8y ago
> This gives money to richer voters because the higher your earnings, the more tax saved. a rise of the zero rate equally effects anyone earning above the new zero rate threshold (regardless of how much they are above it [1]) a full time minimum wage employee earning ~£14,000/year gets exactly the same reduction in tax from this specific increase as an engineer on £90,000/year [1]: once you get above £100,000/year your personal allowance goes down (ultimately to zero)
- coob 8y ago
  The engineer on £90k got an additional £730 tax cut with the 40% threshold moving from £46,350 to £50,000.
- rwmj 8y ago
  The Resolution Foundation disagrees: https://twitter.com/resfoundation/status/1056969156741029889 https://twitter.com/resfoundation/status/1056969156741029889 However I agree that anyone earning over £100K won't be affected because of the peculiar system where you lose the personal allowance in steps over this threshold.
  - blibble 8y ago
    they don't disagree, your point was: > Personal allowance (zero tax band) raised to £12,500 from April (in the Budget today). This gives money to richer voters because the higher your earnings, the more tax saved. the conclusion of which is factually incorrect, and unsupported by your linked chart (which includes more than just the increase in the zero rated band)
    - rwmj 8y ago
      What's the mechanism which is causing a benefit from the 1st and 2nd (the very poorest) groups in that graph, which is caused by adjusting a threshold at £50,000?
      - deleted 8y ago
        [deleted]
- cjrp 8y ago
  But raising the zero rate means someone earning >£50k has less of their income taxed under the higher rate (40%).
mFixman 8y ago
You lose your personal allowance half a percentage point for every pound you earn over £100k. People who earn £125k get 0 of the basic rate. The fun thing is that total marginal income tax between those two numbers is 60% without counting national insurance.
- IkmoIkmo 8y ago
  > The fun thing is that total marginal income tax between those two numbers is 60% without counting national insurance. Could you elaborate?