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Why is income tax so high?
As one of my life goals, I would one day like a job with a salary over 40000 per annum.
It just depresses me at the amount of tax that gets deducted.
Wage Summary Yearly
Gross Pay £40,000.00
Tax free Allowances £6,475.00
Total taxable £33,525.00
Tax paid £6,705.00
Student Loan £2,250.00
National Insurance £3,771.35
Total Deductions £12,726.35
Net Wage £27,273.65
Employers NI £4,388.48
So although I will be earning a wage of 40,000, I will actually only be getting a net wage of 27,000 in my pocket
How are we supposed to get on to the property ladder? I understand taxes are important, but surely the rates that we are charged are unfair?
And before you say - I am aware that taxes in some other countries are much higher.
is it just me who thinks this? Or am I wrong?
It just depresses me at the amount of tax that gets deducted.
Wage Summary Yearly
Gross Pay £40,000.00
Tax free Allowances £6,475.00
Total taxable £33,525.00
Tax paid £6,705.00
Student Loan £2,250.00
National Insurance £3,771.35
Total Deductions £12,726.35
Net Wage £27,273.65
Employers NI £4,388.48
So although I will be earning a wage of 40,000, I will actually only be getting a net wage of 27,000 in my pocket
How are we supposed to get on to the property ladder? I understand taxes are important, but surely the rates that we are charged are unfair?
And before you say - I am aware that taxes in some other countries are much higher.
is it just me who thinks this? Or am I wrong?
Scroll to see replies
To pay for your heavily-subsidized education and free healthcare, maybe.
SO that the communist fascist radical reactionary Labour government can finance the jewish conspiracy and use lazy immigrants to boost their voting bloc 
.
You'd be surprised to find out that half the UK's GDP is generated by government spending. Income taxes are needed for all the things you take for granted: hospitals, roads, wars, the dole, education, prisons, the police, etc.
.You'd be surprised to find out that half the UK's GDP is generated by government spending. Income taxes are needed for all the things you take for granted: hospitals, roads, wars, the dole, education, prisons, the police, etc.
ajp100688
You forget council tax aswell :P Welcome to the real world, fun isn't it!
Plus road tax etc etc
There is a lot of tax to be paying
Well the growing strain on the NHS comes to mind. Oh yeah and also our dumbass government that needs to pay off our unbelievable international debt!
Bateman
The uk doesn't have a lot of resources, it has a highly unproductive labour force and doesn't manufactor a lot of things.
Yet we still have the 6th largest economy.
I hope i answered your question.
Yet we still have the 6th largest economy.
I hope i answered your question.
5th really, the French economy is only above us at the moment due to the historic low of the £ compared to the €. Although watch us fall down that table in coming years as India and all the other Asian nations who obviously do nothing but breed like rabbits overtake our economy through sheer weight of numbers.
Lefty Leo
You'd be surprised to find out that half the UK's GDP is generated by government spending. Income taxes are needed for all the things you take for granted: hospitals, roads, wars, the dole, education, prisons, the police, etc.
You'd be surprised to find out that half the UK's GDP is generated by government spending. Income taxes are needed for all the things you take for granted: hospitals, roads, wars, the dole, education, prisons, the police, etc.
Yes, I know what your saying - but considering we are taxed on everything, does income tax really have to be so high? If you earn over 40000, giving away over 11000 a year is a pretty big sum of money.
Even more taxes to pay after the previously mentioned taxes. Add on VAT on almost everything you buy, a bit of fuel duty, alcohol duty, tobacco duty, stamp duty. Then when you've struggled by and saved up and die, your kids' inheritance will be taxed too.
But, everyone expects Government spending to go up year by year, so they need to tax highly to even attempt to deliver this.
But, everyone expects Government spending to go up year by year, so they need to tax highly to even attempt to deliver this.
Why does every finance-related question on TSR seem to be either "Why won't the government give me more free things?" or "Why do I have to give some of my money to the government?" Or, normally, both in the same post.
It's quite mind boggling.
It's quite mind boggling.
robbo3045
Yes, I know what your saying - but considering we are taxed on everything, does income tax really have to be so high? If you earn over 40000, giving away over 11000 a year is a pretty big sum of money.
It is not that hard to understand. The UK economy is only strong because half of it is in the form of government spending. The government doesn't have a infinite source of money and so needs to tax the people.
PJ991
Even more taxes to pay after the previously mentioned taxes. Add on VAT on almost everything you buy, a bit of fuel duty, alcohol duty, tobacco duty, stamp duty. Then when you've struggled by and saved up and die, your kids' inheritance will be taxed too.
But, everyone expects Government spending to go up year by year, so they need to tax highly to even attempt to deliver this.
But, everyone expects Government spending to go up year by year, so they need to tax highly to even attempt to deliver this.
Don't forget the fines you have to pay.
la fille danse
To pay for your heavily-subsidized education and free healthcare, maybe.
Actually I think some rewording is in order.
la fille danse
To pay for your basic education and a strained, under performing, pushed to its limits, very restrictive healthcare, maybe.
Maybe If I put my 11000 toward personal private healthcare, I might get a better service.
Bateman
It is not that hard to understand. The UK economy is only strong because half of it is in the form of government spending. The government doesn't have a infinite source of money and so needs to tax the people.
Nonsense, you need to generate the wealth to tax it, otherwise the economy would be at a total stand still and would never grow as the same amount of money would be flowing from government to taxpayer back to government and back to taxpayer ad infinitum. The UK economy is strong because we provide top class service based products and we reformed our way out of the too lenient social welfare models still prevalent in continental Europe which contributed to their sluggish growth in the 90s and 00s. Which has meant vis a vi European economies we're much more efficient with our limited workforce.
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