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I came from a working class background and aspirations got me this far, with no plans to slow down - but I could if I chose to. Tax rates are so high that a 20%

I came from a working class background and aspirations got me this far, with no plans to slow down - but I could if I chose to. Tax rates are so high that a 20% pay cut would be a much smaller real terms pay decrease. > while you won't be working Fridays, your mind is still going to be occupied This is another reason why I haven't gone through with it yet. > at least in the UK, pay laughable salaries anyway if you compare it to the profit Agreed; another reason why the 100% pay for 80% time is appealing.

rahimnathwani 4y ago
Slightly OT: "Tax rates are so high that a 20% pay cut would be a much smaller real terms pay decrease." This is about the difference between your marginal tax rate and your average tax rate (and the progressive tax bands that cause the difference), not about tax rates being high. If income tax rates were 90% at all income levels, this would be high, but a 20% cut in gross income would result in a 20% cut in net income.
- alexfoo 4y ago
  There's a slight noticeable effect of tax-free allowances (or 0% band if you think of it that way). UK £100k gross income = £66,692.76 take home UK £80k gross income = £55,092.76 take home So that's a 20% cut in gross income for a 17.4% cut in net income. Put it another way, you're £1,738.55 better off than a flat 20% cut in net income. https://listentotaxman.com/?year=2021&taxregion=uk&married=true&marriageallowance=true&age=0&time=1&ingr=100000 https://listentotaxman.com/?year=2021&taxregion=uk&married=t... https://listentotaxman.com/?year=2021&taxregion=uk&married=true&marriageallowance=true&age=0&time=1&ingr=80000 https://listentotaxman.com/?year=2021&taxregion=uk&married=t...
varispeed 4y ago
Coming from working class you should recognise that agreeing for a pay cut also means that you will be avoiding paying tax (that you would have paid if you had not agreed to a pay cut) and thus depriving public services of funding, for some sort of weird corporate virtue signalling. When one says they would happily take 20% pay cut, they are being selfish, because they also take money away from nurses, doctors, police etc...
- eropple 4y ago
  This is like that effective altruism nonsense, but with extra guilt added. No thank you.

rahimnathwani 4y ago

Slightly OT: "Tax rates are so high that a 20% pay cut would be a much smaller real terms pay decrease." This is about the difference between your marginal tax rate and your average tax rate (and the progressive tax bands that cause the difference), not about tax rates being high. If income tax rates were 90% at all income levels, this would be high, but a 20% cut in gross income would result in a 20% cut in net income.

alexfoo 4y ago
There's a slight noticeable effect of tax-free allowances (or 0% band if you think of it that way). UK £100k gross income = £66,692.76 take home UK £80k gross income = £55,092.76 take home So that's a 20% cut in gross income for a 17.4% cut in net income. Put it another way, you're £1,738.55 better off than a flat 20% cut in net income. https://listentotaxman.com/?year=2021&taxregion=uk&married=true&marriageallowance=true&age=0&time=1&ingr=100000 https://listentotaxman.com/?year=2021&taxregion=uk&married=t... https://listentotaxman.com/?year=2021&taxregion=uk&married=true&marriageallowance=true&age=0&time=1&ingr=80000 https://listentotaxman.com/?year=2021&taxregion=uk&married=t...

varispeed 4y ago

Coming from working class you should recognise that agreeing for a pay cut also means that you will be avoiding paying tax (that you would have paid if you had not agreed to a pay cut) and thus depriving public services of funding, for some sort of weird corporate virtue signalling. When one says they would happily take 20% pay cut, they are being selfish, because they also take money away from nurses, doctors, police etc...

eropple 4y ago
This is like that effective altruism nonsense, but with extra guilt added. No thank you.