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Ask the TSR Government - 22nd Parliament watch

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    (Original post by James Milibanter)
    It's not that hard to work out:

    Current net income (exc. NI) for someone earning £175k

    £110107

    Proposed net income (exc. NI) for someone earning £175k

    12500 + 30000 + 60000 + 12500

    £115000

    Current net income (exc. NI) for someone earning £200k

    £123857

    Proposed net income (exc. NI) for someone earning £200k

    12500 + 30000 + 60000 + 25000

    £127500
    James Milibanter

    Your budget is not clear, an individual earning £175000 does not have a personal allowance, nor does the individual start paying the higher rate of tax at £42385 like other workers. Your unclear changes do not reduce the tax changes of a worker earning £175000. A worker earning £175000 will have to pay £6357 on the first £31785 of income, £47285.60 in tax on earnings between £31786 to £150000, and £12500 on income between £150000 to £175000: net income has been reduced to £108857.40, not increased to £115000 as you state.

    The workers who see a tax cut are workers earning below the threshold of £100000 who benefits from the changes to the personal allowance, and the boundary changes for the higher rate of tax. Workers earning between £121200 to £125000 benefit as workers in this boundary will see the personal allowance fall in with their income, and workers earning between £125000 to £150000 will have no change in their tax bill. Workers earning over £150000 will see their tax bill increase because the final part of their income above £150000 will be taxed at 50%, not 45%; these workers do not benefit from the personal allowance, nor the change in the higher rate tax to 50%. If you budget wanted to raise the level when 40% tax is being paid for people earning over £125000 from £31785 to £50000 the budget needs rewriting.
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    (Original post by Nigel Farage MEP)
    James Milibanter

    Your budget is not clear, an individual earning £175000 does not have a personal allowance, nor does the individual start paying the higher rate of tax at £42385 like other workers. Your unclear changes do not reduce the tax changes of a worker earning £175000. A worker earning £175000 will have to pay £6357 on the first £31785 of income, £47285.60 in tax on earnings between £31786 to £150000, and £12500 on income between £150000 to £175000: net income has been reduced to £108857.40, not increased to £115000 as you state.

    The workers who see a tax cut are workers earning below the threshold of £100000 who benefits from the changes to the personal allowance, and the boundary changes for the higher rate of tax. Workers earning between £121200 to £125000 benefit as workers in this boundary will see the personal allowance fall in with their income, and workers earning between £125000 to £150000 will have no change in their tax bill. Workers earning over £150000 will see their tax bill increase because the final part of their income above £150000 will be taxed at 50%, not 45%; these workers do not benefit from the personal allowance, nor the change in the higher rate tax to 50%. If you budget wanted to raise the level when 40% tax is being paid for people earning over £125000 from £31785 to £50000 the budget needs rewriting.
    The tax brackets I'm proposing are simple.

    0-12500 = 0%
    12500- 50000 = 20%
    50000 - 150000 = 40%
    150000+ = 50%

    This equals a tax cut for over 99% of the population, until they're earning over £200k
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    >17% of the earning population earn less than £12500 They all will pay no tax
    >90% of the earning population earn less than £50000 They all will get a tax cut
    >99% of the earning population earn up to £150000 They all get a tax cut

    Only the people earning over £200k will pay more tax, the 50% tax rate DOES NOT make those earning over £150k pay more tax as a lot of them will pay less thanks to the other changes, and those who will pay more tax will only be doing so after they are earning over £200k.
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    (Original post by James Milibanter)
    The tax brackets I'm proposing are simple.

    0-12500 = 0%
    12500- 50000 = 20%
    50000 - 150000 = 40%
    150000+ = 50%

    This equals a tax cut for over 99% of the population, until they're earning over £200k
    I doubt your costings then, increasing the personal allowance by £1900 for all workers reduces potential tax revenue by £380 for each person. There are £29.7m tax payers in the UK, increasing the personal allowance by £1900 for all of them will cost £11.8bn in lost tax revenue, and increasing the higher rate threshold by £18000 for some people will cost more money on top of that £11.8bn.

    Current tax rates:

    £0-£10600 = 0%
    £10600 - £42385 = 20%
    £42385 - £150000 = 40%
    £150000 + = 45%

    Unless the workers earns over £121200 where the tax rates are:

    £0 - £31785 = 20%
    £31785 - £150000 = 40%
    £150000 + = 45%

    The Chancellor's changes introduce a cost by increasing the personal allowance, a cost for introducing the personal allowance for people earning over £121200, and a cost for increasing the higher rate tax threshold to £50000; the Chancellor has not costed the bill properly.
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    (Original post by Nigel Farage MEP)
    I doubt your costings then, increasing the personal allowance by £1900 for all workers reduces potential tax revenue by £380 for each person. There are £29.7m tax payers in the UK, increasing the personal allowance by £1900 for all of them will cost £11.8bn in lost tax revenue, and increasing the higher rate threshold by £18000 for some people will cost more money on top of that £11.8bn.
    There's the increased economic activity from more disposable income which will most likely be reinvested into the economy therefore raising wages and therefore tax receipts (though it'll be impossible to account for this) as well as the 50p rate also which helps balance it all. It's also worth noting that increasing the personal allowance would have costed about £43bn.
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    (Original post by James Milibanter)
    There's the increased economic activity from more disposable income which will most likely be reinvested into the economy therefore raising wages and therefore tax receipts (though it'll be impossible to account for this) as well as the 50p rate also which helps balance it all. It's also worth noting that increasing the personal allowance would have costed about £43bn.
    For some workers you have introduced a personal allowance, not increase it, making the cost even higher. I support tax cuts for people but the £10bn figure is not near the real cost of the move; the budget deficit is going to be billions over the stated level.
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    (Original post by Nigel Farage MEP)
    For some workers you have introduced a personal allowance, not increase it, making the cost even higher. I support tax cuts for people but the £10bn figure is not near the real cost of the move; the budget deficit is going to be billions over the stated level.
    Provided I get the figures for those earning over £150k I shall prove you wrong.
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    (Original post by Nigel Farage MEP)
    For some workers you have introduced a personal allowance, not increase it, making the cost even higher. I support tax cuts for people but the £10bn figure is not near the real cost of the move; the budget deficit is going to be billions over the stated level.
    The budget beficit will not be nearly be that high - that is a massive exaggeration.
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    What plans does the Secretary of State for Defence Aph have for the British armed forces?
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    (Original post by Nigel Farage MEP)
    What plans does the Secretary of State for Defence Aph have for the British armed forces?
    I am currently in discussions with the government about what we shoudl do. I will not be discussing my policy or ideas outside of government until I have Releced my plans.
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    (Original post by Aph)
    I am currently in discussions with the government about what we shoudl do. I will not be discussing my policy or ideas outside of government until I have Releced my plans.
    What are you going to relece!?
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    Can I ask the Government about the BBC employing an American actor for the new series of BBC Top Gear? There are plenty of right wing people in the UK who could take Jeremy Clarkson's and the others' place instead, after all four million people voted UKIP last May.
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    (Original post by Life_peer)
    Are you completely stupid? :facepalm:
    No otherwise we would be in the Conservative party
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    *moan moan moan*

    That is all.
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    (Original post by barnetlad)
    Can I ask the Government about the BBC employing an American actor for the new series of BBC Top Gear? There are plenty of right wing people in the UK who could take Jeremy Clarkson's and the others' place instead, after all four million people voted UKIP last May.
    As Home Secretary, I believe the BBC are well within their rights to appoint whoever they like to the role.


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    (Original post by barnetlad)
    Can I ask the Government about the BBC employing an American actor for the new series of BBC Top Gear? There are plenty of right wing people in the UK who could take Jeremy Clarkson's and the others' place instead, after all four million people voted UKIP last May.
    More appropriate for everyone then that Clarkson would prefer to work in the private sector

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    (Original post by United1892)
    No otherwise we would be in the Conservative party
    Even my gran comes up with better comebacks. :rolleyes:
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    (Original post by Life_peer)
    Even my gran comes up with better comebacks. :rolleyes:
    Not really a comeback, just the truth.
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    (Original post by Saracen's Fez)
    The Defence Secretary has only had a couple of days in the role, and joined the Government fairly recently. As a result he is in dialogue with other members of the Government to determine what those policies should be. Once that has finished I will be instructing him to share this info when asked.
    I realised I was not meant to have a follow up so I have moved the conversation to this thread. The government has had four months to discuss defence policies, I do not think defence policies will change that much after the appointment of a new Secretary of State for Defence, MPs should be told the existing defence policies. If the defence policies cannot be shared, can the Prime Minister elaborate on education policies?
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    (Original post by Nigel Farage MEP)
    I realised I was not meant to have a follow up so I have moved the conversation to this thread. The government has had four months to discuss defence policies, I do not think defence policies will change that much after the appointment of a new Secretary of State for Defence, MPs should be told the existing defence policies. If the defence policies cannot be shared, can the Prime Minister elaborate on education policies?
    Well, unlike perhaps in UKIP our members' beliefs are not necessarily whipped into being carbon copies of each other.

    The flagship policy will be a raise in the school starting age as part of a reorganisation of early years education. I also hope to carry out a full reform of secondary qualifications.
 
 
 
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