Very important for people to understand this. For high earners (100-200k), marginal tax rates can already pass 60%. That is an income which is locally considered very high but compared to our Atlantic cousins is somewhat more normal.
I will be thousands of pounds worse off per year under the new tax plans, but I'm OK with that because I understand that it is necessary. However, we are rapidly approaching most people's tolerance limit in this regard; unless the next government does a very good job of tackling economic injustice it feels like people will just give up - at which point the only way is down.
Now, what "give up" really looks like is key - I feel like widespread civil unrest is far closer than most people realize, but before that there will be a further decline in social cohesion. Right now it feels like this story is being masked by the Ukraine situation.
Becaus of the “high income child tax” and student loan repayments marginal tax rates at just 50k hit 70%. They drop again at 60k, but it’s tricky to justify working extra hard for a £5k pay rise when you only keep £2k of it.
Doesn’t help that you can’t file jointly in the U.K. either.
I will be thousands of pounds worse off per year under the new tax plans, but I'm OK with that because I understand that it is necessary. However, we are rapidly approaching most people's tolerance limit in this regard; unless the next government does a very good job of tackling economic injustice it feels like people will just give up - at which point the only way is down.
Now, what "give up" really looks like is key - I feel like widespread civil unrest is far closer than most people realize, but before that there will be a further decline in social cohesion. Right now it feels like this story is being masked by the Ukraine situation.