wessy wrote: Sluffy wrote:Fwiw I did state on here that Rishi was the least worst choice between him and Truss because at least his economic policies had sense to them whilst Truss's were political ideology rhetoric to gain her leadership votes.
And fwiw also, I think the scrapping of the 45% tax rate is something of a political red herring in the sense that it only applies to those who earn over £150k per year and the tax revenue it actually raises is not really that great (if you are earning £150k or more a year you have tax advisors who tell you what to do legally with your money to minimise what tax you pay on it!).
The reason why it is trotted out by Labour and the press is more to do with the 'image' of the fat cats getting fatter, when the truth is really that the fat cats are mostly already 'avoiding' the 45% tax in the first place anyway.
Totally agree with your opening statement they had a potential safe pair of hands in Sunak. But the party know best and elected a PM that looks totally lacking in ability.
For me it's the lack of fairness that makes these cuts unpalatable, of course we want to see the economy grow that would be the same for any government, but this is reckless.
Unfair ? well after working for 42 years i know because i have been involved in asking for a pay rise from time to time, the comeback always included a need to increase productivity, even if it was just for a small increase.
The top earners in the next 12 months will benefit with up to 55k for the lucky millionaires. For what, Nothing no productivity needed, a gift yes an instant hand out.
Whilst at the other end of the scale we the unworthy have to wait and hope that a gamble pays off and bakes a bigger cake that will trickle down and then we can celebrate our share whatever that is. Its sickening and the energy crisis will pale into insignificance IF mortgage rates rise, before the oven gets warm, people will be losing there homes.
Just to show how bad it is we are at the mercy of the Drab Four Truss, Kwasi, Coffey and Mogg FFS how bad can it get.
I think you (as well as many others) fall into the emotional trap of the rich get richer and the poor get poorer in respect of the headline of the 45% tax rate being scrapped.
But if I was a millionaire, do you think I would not have taken steps to reduce the amount of tax I would be paying by employing an accountant / tax advisor?
There are relatively few people who have such income that are paying their full tax burden and have not been advised of legal means to avoid doing so - and that is evidenced in how much revenue actually collected from the tax rate of 45%
So what I'm trying to say is that those relatively few who aren't tax savvy and paying their full whack will get richer from the tax reduction but the vast majority of the 'fat cats' are already legally avoiding paying at that rate simply won't gain anything from the change - as they've already structured their tax affairs not to pay at that rate in the first place.
Think of it this way, say a pint in your local pub costs £3.00 and your local paper prints unlimited vouchers with which you can buy the pint for £2.50 what would you do, go to the pub and buy them for £3.00 or take the vouchers and buy them for £2.50?
Most would take the vouchers I would say - agree?
Now a new landlord takes over the pub and reduces the price of a pint to say £2.90 but the paper still is issuing unlimited vouchers for pints at £2.50 so would the price reduction by the landlord have put money into your pocket and the pockets of everyone else legally 'avoiding' paying the full price in the first place - no it wouldn't.
So only those who haven't 'avoided' paying the full price in the first place would save themselves some money from the new landlord's price reduction and become more richer from the change in the system.
The reduction in the price of a pint (the scrapping of the 45% tax rate) won't increase your wealth (or those earning over £150k per year) if you (them) have already taken legal steps to not pay the full price for the pint - whether it be £3.00 or £2.90 (whether it be 45% tax or now at 40% tax) because you (and them) haven't been paying at that level in the first place by legally 'avoiding' doing so before the reductions were recently made.
As for Truss she has simply followed the first rule of politics - do whatever you have to, to gain power - by promising huge tax cuts to get her elected.
She obviously believes her own rhetoric and has surrounded herself with those who think the same way (remember me warning others about Confirmation bias) and this is what happens as a consequence.