UK hiking taxes - many will end up paying 61% income tax rates

[w¡n9Nµ7 §£@¥€r 123]

As widely predicted, Alistair Darling introduced a new top level of tax, which will be imposed on people earning over £150,000 a year. They will pay 45p in the pound, up from 40p, from April 2011.

Less anticipated though was the clawback of the personal allowance for higher earners, which will see some taxpayers effectively paying paying 60p in the £1, according to leading accountants. These changes will not just affect the 1pc of taxpayers earning more than £150,000 a year. It will potentially affect 650,000 people earning more than £100,000 a year. To further rub salt into the wound these higher earners will also pay an additional 1pc in National Insurance costs, giving an effective taxation rate of 61pc - a rate not seen since the late 1980s.

...

It is estimated that about 400,000 people will have to pay the new supertax.

http://www.telegraph.co.uk/finance/finance...rners-woes.html

[mawilson 2,133]

As widely predicted, Alistair Darling introduced a new top level of tax, which will be imposed on people earning over £150,000 a year. They will pay 45p in the pound, up from 40p, from April 2011.

Less anticipated though was the clawback of the personal allowance for higher earners, which will see some taxpayers effectively paying paying 60p in the £1, according to leading accountants. These changes will not just affect the 1pc of taxpayers earning more than £150,000 a year. It will potentially affect 650,000 people earning more than £100,000 a year. To further rub salt into the wound these higher earners will also pay an additional 1pc in National Insurance costs, giving an effective taxation rate of 61pc - a rate not seen since the late 1980s.

...

It is estimated that about 400,000 people will have to pay the new supertax.

That's it? Somehow I doubt that only 400,000 people earn more than £150,000 a year.

[Trumplestiltskin 5,791]

From what I've read the UK's economic output may fall by as much as 1.1% in 2009. I guess they're betting the farm on these tax increases as a way of stimulating consumer spending among the middle class.

Things must be bad if the government is looking at record borrowing which will double the national debt. The country might go bust.

Doesn't bode well for friends of mine over there.

[w¡n9Nµ7 §£@¥€r 123]

From what I've read the UK's economic output may fall by as much as 1.1% in 2009. I guess they're betting the farm on these tax increases as a way of stimulating consumer spending among the middle class.

Things must be bad if the government is looking at record borrowing which will double the national debt. The country might go bust.

Doesn't bode well for friends of mine over there.

Aren't you glad you live in America, a utopia of wise fiscal management?

[Trumplestiltskin 5,791]

From what I've read the UK's economic output may fall by as much as 1.1% in 2009. I guess they're betting the farm on these tax increases as a way of stimulating consumer spending among the middle class.

Things must be bad if the government is looking at record borrowing which will double the national debt. The country might go bust.

Doesn't bode well for friends of mine over there.

Aren't you glad you live in America, a utopia of wise fiscal management?

I think even today - the US job market is better than that of the UK. But that's not saying much at this point - we're not at Great Depression levels yet, but as both the UK and US economies are largely Service Sector these days, the house of cards is in danger of collapse.

[w¡n9Nµ7 §£@¥€r 123]

I don't know about the UK but in the US ones perception of the job market can vary greatly depending on where they live and their personal skillset.

My family in the RTP area still think we're living in a booming job market. While a few hundred miles north up in the Jerz, I see laid off people in my sleep. I shudder to think what it's like in Ohio.

[Trumplestiltskin 5,791]

I don't know about the UK but in the US ones perception of the job market can vary greatly depending on where they live and their personal skillset.

My family in the RTP area still think we're living in a booming job market. While a few hundred miles north up in the Jerz, I see laid off people in my sleep. I shudder to think what it's like in Ohio.

On the other side I think I would have an easier time getting a job in NYC than I would out in LA.

[w¡n9Nµ7 §£@¥€r 123]

I don't know about the UK but in the US ones perception of the job market can vary greatly depending on where they live and their personal skillset.

My family in the RTP area still think we're living in a booming job market. While a few hundred miles north up in the Jerz, I see laid off people in my sleep. I shudder to think what it's like in Ohio.

On the other side I think I would have an easier time getting a job in NYC than I would out in LA.

NYC is always a good place to be if one is looking for work, even in "bad" times