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Its not direct taxes that people is causing pain for those on lower income. taxation for people on £250k is very different to those on £25k Sure _graduates_ a

Its not direct taxes that people is causing pain for those on lower income. taxation for people on £250k is very different to those on £25k Sure _graduates_ are feeling the pinch of tax. No, the cost of living is driven by three things: Rent. Staple inflation (food, basic travel, etc) fucking fuel prices. If you're outside of london and you are earning the average of £27k after tax its £1800 a month. rent for a two bed place is between £850-1200 a month, thats going to go up your heating is £250 a month (thats doubled ) your food bill has doubled Your car insurance has gone up to £1k a year Thats the real squeeze. Yes taxing them harder is bad. However taxing someone on £250k a year a bit more, fine they can fucking take it. removing the ridiculous contractor loophole where you can go from 45% income tax to <30% even if you earn megabucks is great.(hello IR35) Now increase captial gains tax.

flir 3y ago
Fun fact: when you take account of inflation, petrol's pretty cheap (135p in 2012 would be 184p today according to the BofE's inflation calculator - you get different results with different starting points of course, but it's hard to cherry-pick one that's that runs much above inflation over the same period). I reckon fuel costs feel worse now because salaries have flatlined. > removing the ridiculous contractor loophole where you can go from 45% income tax to <30% While paying your own holiday, insurance, employer's stamp, sick pay, pensions, bench time, etc. If you've got an in-demand skill and you're healthy I'd say it's definitely an improvement, but it's not quite as simple as comparing tax rates.
- KaiserPro 3y ago
  > While paying your own holiday, insurance, employer's stamp, sick pay, pensions, bench time, etc. Whilst also being able to write of a bunch of things against tax (insurance, car, property if you're clever, loans etc etc etc). I am fully aware of how big the loophole used to be. Its also being abused to keep costs down at high turnover jobs as well. but that's another issue. > If you've got an in-demand skill and you're healthy I'd say it's definitely an improvement, but it's not quite as simple as comparing tax rates. Its entirely to do with tax minimisation, otherwise people wouldn't go through the faff of doing it? Why on earth would you give up employment rights and stability, just so you can have the privilege of doing accounts each year? Its avoiding tax, something that low/middle earners aren't able to do/cost effective enough.

flir 3y ago

Fun fact: when you take account of inflation, petrol's pretty cheap (135p in 2012 would be 184p today according to the BofE's inflation calculator - you get different results with different starting points of course, but it's hard to cherry-pick one that's that runs much above inflation over the same period). I reckon fuel costs feel worse now because salaries have flatlined. > removing the ridiculous contractor loophole where you can go from 45% income tax to <30% While paying your own holiday, insurance, employer's stamp, sick pay, pensions, bench time, etc. If you've got an in-demand skill and you're healthy I'd say it's definitely an improvement, but it's not quite as simple as comparing tax rates.

KaiserPro 3y ago
> While paying your own holiday, insurance, employer's stamp, sick pay, pensions, bench time, etc. Whilst also being able to write of a bunch of things against tax (insurance, car, property if you're clever, loans etc etc etc). I am fully aware of how big the loophole used to be. Its also being abused to keep costs down at high turnover jobs as well. but that's another issue. > If you've got an in-demand skill and you're healthy I'd say it's definitely an improvement, but it's not quite as simple as comparing tax rates. Its entirely to do with tax minimisation, otherwise people wouldn't go through the faff of doing it? Why on earth would you give up employment rights and stability, just so you can have the privilege of doing accounts each year? Its avoiding tax, something that low/middle earners aren't able to do/cost effective enough.