Budget review

[Matblack]

I'm actually on the other end of the spectrum.

Yes I agree that benefit fraud maybe an issue but I have no problems in paying taxes to help people who need it. Yes I will be a little worse off next year but I like the safety net that if I become unemployed or unable to work that I will be helped to survive. If I was in the States I would be abandoned, you don't want to know what their health system will (not) do for someone who has no medical insurance!

MB

[Admiral Huddy]

Originally Posted by Desmo

The whole system needs to be looked at, but it's never going to happen :/
It does make you wonder why you bother.

yep I'm conviced that this neighbour of mine has more cash in his pocket at the end of the day than I do. Even my investments are taxed at 40%.

The money from our fostering has had to go to Teresa else we would have to pay higher rate on that. I've not bothered with any investments or savings because it's not worth it after tax, yet they want us to save more. I'm best off spending the money or paying extra money off my mortgage.

[Desmo]

Matt, I'm all for a welfare system and I'm more than happy to pay into it. But it just seems that there are so many unfair payments made to people who seem to be able to spend it on all the wrong things. Sky, Xbox, Playstation, Fags, Beer and the like are being paid for with our taxes. I think a voucher system would cut out a lot of this. This could really do with it's own thread, hehe.

[Matblack]

Originally Posted by Admiral Huddy

yep I'm conviced that this neighbour of mine has more cash in his pocket at the end of the day than I do. Even my investments are taxed at 40%.

The money from our fostering has had to go to Teresa else we would have to pay higher rate on that. I've not bothered with any investments or savings because it's not worth it after tax, yet they want us to save more. I'm best off spending the money or paying extra money off my mortgage.

But the reason you are taxed at a higher rate is that it is considered that that should give you enough to survive and above that you need to get higher pay rises to get more money and the government gets a bigger chunk to 'do good' with. I actually support a higher rate of tax for those earning over £100,000pa, probably 50%.

And I do realise the potential repercussions of this the alleged mass exodus of our business elite and I think its bunk tbh.

MB

[Matblack]

You're not claiming JSA based on your contributions?

MB

[Admiral Huddy]

Originally Posted by Matblack

But the reason you are taxed at a higher rate is that it is considered that that should give you enough to survive and above that you need to get higher pay rises to get more money and the government gets a bigger chunk to 'do good' with. I actually support a higher rate of tax for those earning over £100,000pa, probably 50%.

And I do realise the potential repercussions of this the alleged mass exodus of our business elite and I think its bunk tbh.

MB

I think a 50% tax on 100k plus earner is a much better policy tbh.

The banding for higher rate tax payers is not that high (£32,400) so this means I pay the same rate as someone on 200k. Sorry, but the sums don't add up. Paying higher tax is one of those things I except (Death and Taxes) but it's everything else like i've stated above. The fact that someone just below the higher tax rate could end up with more in their pocket than someone who is above the threshold, since they have more entitlements.

Take childcare for example, you can get Child care vouchers from your employers and the vouchers are deducted from you income. However, it means that they are non tax deductable and free of NI. When Teresa returns to work, we need a childminder but we won't qualify for this scheme because i'm a higher tax payer. The irony is that sho could opt not to return to work, then the government loose out on her income tax.

[Matblack]

Originally Posted by Kitten_caboodle

I've tried. That's what I thought I should be able to do. They say that because Leo works full time and earns what he does then I'm not eligible. Certainly I won't get any help towards the house/council tax. I don't really understand it. I've got an appointment to go and see them on Monday, so I'll know better then.

Your situation may be complicated if you haven't built up enough NI contributions due to having been self employed but if you are not working and have worked in the past you should be able to claim Contribution based JSA http://www.jobcentreplus.gov.uk/JCP/...nce/index.html

I'd like to think that if something happened with regard to my job then I wouldn't change my political standings but you are right in dire circumstances it is possible

MB

[Matblack]

Originally Posted by Admiral Huddy

The irony is that sho could opt not to return to work, then the government loose out on her income tax.

Indeed they do, what you are outlineing is the benefit trap, its been around for a very long time, by instigating changes like childcare vouchers the government has tried to reduce it but it will always be there. There will always be a level at which it is or is not productive to return to work vs claim benefit. No system is perfect but it is better than it was.

MB

[Matblack]

Originally Posted by Kitten_caboodle

yeah I never thought that was fair. At the company I used to work at they used to give people the option of going over the tax bracket or staying just under it and taking benefits instead (shares etc) so they weren't taxed at 40pc.

Interesting. Do you think thats fair?

MB

[Desmo]

So where do I get my help from? I've paid my taxes for a bloody long time and if my business goes bust, being self-employed, I get no help. Where is the incentive for people to start up their own small business?