A person on £25k is actually taxed at over 40%
TheTruth1983
Posts: 13,462 Forum Member
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The joys of national insurance, the tax con that fools people into believing they are paying less tax than they actually are.
This is madness, a person on the basic income tax rate is actually paying twice the headline rate because of the stealth tax that is national insurance.
The time has come for national insurance to be scrapped as this is the reason people on NMW are not taking home a living wage. If we stop taxing the incomes of minimum wage employees we effectively give them a better than living wage rate.
This is madness, a person on the basic income tax rate is actually paying twice the headline rate because of the stealth tax that is national insurance.
The time has come for national insurance to be scrapped as this is the reason people on NMW are not taking home a living wage. If we stop taxing the incomes of minimum wage employees we effectively give them a better than living wage rate.
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How about increasing the minimum wage? You end up with a better situation. More money washing around the economy, people spending more, more tax revenue collected.
That is what you achieve in reality by not taxing anyone on minimum wage, an utterly stupid thing to do when you are going to give it back in the form of tax credits and other in work benefits at great administrative cost.
Or end the state monopoly on services and allow people to choose for themselves how to spend their money.
What exactly do you mean by this?
Exactly what it says
So you would be willing to give another organisation (no doubt a profit making enterprise) your money; to pay for emptying your bins, providing lighting in your streets, maintaining the railways & highways etc, but you would rather not pay this in the form of taxation to provide the same service!
£2083, you only actually get £1250 net?
edit - I guess you mean 40% on the £15k, given the 10k tax free.
Completely transparent on your pay slip and precisely calculable in advance.
"monopoly on services" ??
Last time I checked, you could use private hospitals, dentists, physios, schools, child care, and all manner of professional services.
Where do you get 40% from ??
20% plus 12% less allowances
https://fairtax.org/about/how-fairtax-works
This has some support in the US, works out at 23%.
It would be a much simpler system to administer making tax harder to avoid.
A personal tax allowance of, say, £15k and a flat tax rate of 20-25% on everything after that might be the best way to go.
But longer queues in shops due to less staff being employed.
An uber Conservative point of view - less governent control of our money and more self choice as to how you spend it.
Cant say i disagree though
Tax 20%, NI 12% which is some way short of over 40%.
I prefer classic liberal knowing what modern conservatism has become
Absolutely. What could be more fair than everyone contributing the same % of their income. You earn more, you contribute more, but never more than a 1/4. Anything more than a 1/4 is a disincentive.
£1M - £250000 / 10k / £2500.
Scrap all other forms of taxation. (I.E. VAT / Council / fuel etc.)
We do need a personal tax allowance though as taxing someone on NMW is just stupid regardless of whether we have a flat tax or not.
I would certainly scrap all property taxes and replace them with a land value tax.
Sorry I was referring to the OP and title where it seems numbers are just plucked out of the air with no basis in reality.
"state monopoly on services" , translated means that the person stating this does not believe in public services and wishes to see them ended. This benefits the very rich of course.
The main beneficiaries of public services are the middle-classes, in fact the concept of "middle-class" only exists because of public spending.
Certainly their own income could not hope to match that which the state provides in terms of education and healthcare.
Motto: Beware of Libertarian Outrage On Behalf Of The Poor.
Don't think that's entirely the issue. I think the greater concern is that merging the two will hit pensioners who are largely exempt from NI.