Are we overtaxed

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cremeegg

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The FT headline is talking about the 45% top tax bracket in UK which is even higher than we have here.

In total they actually have about 7 million people pay 40% or higher marginal rate.

The freeze on income tax thresholds means the number of people paying the 45 per cent levy on earnings has more than doubled in the past three years, from 520,000 in 2021-22, the year before thresholds began to be frozen.
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According to figures published by HM Revenue & Customs on Thursday, the number of higher rate taxpayers — who pay tax at 40 per cent on earnings between £50,271 and £125,140 — is expected to rise to 6.31mn in 2024-25, up from 4.43mn people in 2021-22.
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arbitron said:
The FT headline is talking about the 45% top tax bracket in UK which is even higher than we have here.

In total they actually have about 7 million people pay 40% or higher marginal rate.
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That's 40% on incomes over €60,000 in the UK. We pay 40% on earnings over €42,000. That's some difference.
 
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Lies, damm lies and statistics, we probably pay more in VAT and income tax, but they pay more in local authority charges +things like the privitisation of water driving in what is, in effect, a tax anyway
 
thedaddyman said:
Lies, damm lies and statistics, we probably pay more in VAT and income tax, but they pay more in local authority charges +things like the privitisation of water driving in what is, in effect, a tax anyway
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We still pay more tax and, crucially, we are taxed far more heavily on income but they pay more indirect taxes. They are incentivised to work harder, we are incentivised to work less.
 
Also we have the highest percentage of people on some sort of welfare payments in Europe. Other countries build infrastructure, we give alot of people cash instead. That means productivity goes down and prices go up which explains why we now have highest prices in eu
 
Purple said:
We still pay more tax and, crucially, we are taxed far more heavily on income but they pay more indirect taxes. They are incentivised to work harder, we are incentivised to work less.
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Historically, I moved back from London years ago for a payrise before tax and a paycut after tax. That first payslip is always a shock when you do that.
 
joe sod said:
Also we have the highest percentage of people on some sort of welfare payments in Europe. Other countries build infrastructure, we give alot of people cash instead. That means productivity goes down and prices go up which explains why we now have highest prices in eu
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And we have the highest level of under employment, where the majority of the household income comes from handouts.
 
joe sod said:
Also we have the highest percentage of people on some sort of welfare payments in Europe. Other countries build infrastructure, we give alot of people cash instead. That means productivity goes down and prices go up which explains why we now have highest prices in eu
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Very insightful point.
 
Government keeps telling us how many people are in employment. Would be great to know how many work at least a 35 hour week
 
In my opinion, any income tax >50% is being over taxed.

I remember the bad old days being on 65% tax rate. Any over time done and the state got 65% of it......
 
thedaddyman said:
Lies, damm lies and statistics, we probably pay more in VAT and income tax, but they pay more in local authority charges +things like the privitisation of water driving in what is, in effect, a tax anyway
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Yes. We would need worked comparisons of tax, social insurance, USC., levies, property & other taxes & duties payable before commenting.
 
Sophrosyne said:
Yes. We would need worked comparisons of tax, social insurance, USC., levies, property & other taxes & duties payable before commenting.
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And you also need to factor in what your taxes pay for... the NHS versus out of pocket expenses here for healthcare etc
Property tax may be higher in UK, but includes refuse collection iirc.
 
Purple said:
That's 40% on incomes over €60,000 in the UK. We pay 40% on earnings over €42,000. That's some difference.
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Yes, and not too long ago, the 42k SRCOP was 36,800.

Gerard Brady of IBEC produced this chart of the SRCOP and wage growth.

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@Protocol, in the charts showing recipients and beneficiaries, isn't there an element of double counting of both?

A recipient/beneficiary may be entitled to more than one form of payment, but they are included in the count of each payment type.

So the charts are not intended as an indicator of the percentage of the population receiving the benefits mentioned.
 
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