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UK reverses dropping "45% tax bracket"

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  1. #1

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    UK reverses dropping "45% tax bracket"

    qhank and GreenCatalonia like this.

  2. #2

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    Not paywalled ...

    https://twitter.com/KwasiKwarteng/st...20620293468160

    The chancellor said the decision to cut tax for people on incomes of £150,000 or more “has become a distraction from our overriding mission to tackle the challenges facing our country”.

    He continued: “As a result, I’m announcing we are not proceeding with the abolition of the 45p tax rate.”
    https://www.theguardian.com/politics...eng-chancellor
    hullexile and markranson like this.

  3. #3

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    It didn't take her long to live up to "the iron weathervane" did it?

    Right decision though

    Chancellor's head now resting on the chopping block.

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  4. #4

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    Right political decision... but I'm sure I saw the cut costed at only £2bn per year. Frankly it seemed the one giveaway in the overall far larger package that would actually change economic incentives and possibly drive some more activity back to the UK. Way more than giving everyone else £170 to spend on booze and scratchcards.

    I don't see how she can fire Kwasi without resigning in shame at appointing and going along with his clown plan, but I'm sure she'll find the right gymnastics

    shri, Sage and East_coast like this.

  5. #5

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    "we listened"

    anyway no harm done. The hedge fund managers made their corn on the falling pound, so all is good in Truss World


  6. #6

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    Time for HK to roll out a special visa for the UK tax emigree wave

    "Dual circulation" in action

    East_coast likes this.

  7. #7

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    Quote Originally Posted by Peaky:

    I don't see how she can fire Kwasi without resigning in shame at appointing and going along with his clown plan, but I'm sure she'll find the right gymnastics
    It is the gymnastics tgat will be worth watching...

    From the NYT..


    Mr. Kwarteng and Ms. Truss lived close to each other in Greenwich, southeast London, and the ideological bond they forged when writing “Britannia Unchained” blossomed.

    So, while oddsmakers do not rate Mr. Kwarteng’s survival chances, losing him would be a huge blow for Ms. Truss because his announcement was the fulfillment of their joint project to ignite growth through tax cuts and deregulation.
    https://www.nytimes.com/2022/10/02/w...s-economy.html

  8. #8

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    Quote Originally Posted by Peaky:
    Right political decision... but I'm sure I saw the cut costed at only £2bn per year. Frankly it seemed the one giveaway in the overall far larger package that would actually change economic incentives and possibly drive some more activity back to the UK. Way more than giving everyone else £170 to spend on booze and scratchcards.

    I don't see how she can fire Kwasi without resigning in shame at appointing and going along with his clown plan, but I'm sure she'll find the right gymnastics
    Indeed.

    'EU has pursued ... tax harmonisation ... directive on the alignment of tax rates between 45% and 55%'

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    The UK had gone from a super high tax rate to 40% the aligned back up to 45%

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  9. #9

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    More and more annoyed by the debacle the more I think about it. Basically means the whole topic will be toxic for a generation, while a huge slug of inflation lowers the real value of all the tax thresholds dramatically. Thanks Liz.

    (Still 45% is child's play... never been more upset with the UK than when I was hit with marginal deductions of over 70% on a bonus i worked ungodly hours for all year... 40% tax, plus 2% NI, plus 9% student loan repayment, plus 20% effective rate impact from losing your nil rate personal allowance as you go from c. 100k to 125k. I didnt even know about that last bit until i did my tax return so found myself having to beg with the tax man to give me an extra three months to pay the bill).

    shri and Elefant&Castle like this.

  10. #10

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    Quote Originally Posted by Peaky:
    More and more annoyed by the debacle the more I think about it. Basically means the whole topic will be toxic for a generation, while a huge slug of inflation lowers the real value of all the tax thresholds dramatically. Thanks Liz.

    (Still 45% is child's play... never been more upset with the UK than when I was hit with marginal deductions of over 70% on a bonus i worked ungodly hours for all year... 40% tax, plus 2% NI, plus 9% student loan repayment, plus 20% effective rate impact from losing your nil rate personal allowance as you go from c. 100k to 125k. I didnt even know about that last bit until i did my tax return so found myself having to beg with the tax man to give me an extra three months to pay the bill).
    Ouch, that’s rough.

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