Interest rates

[Amarillo]

IMO there’s no way that HS2 will now be cancelled in it’s entirety @Amarillo . Just come and look at the scale of the project already well underway through the Chilterns.

If you asked me a week ago I’d have said that “no way” would Kwarsi-Truss slash taxes by 11.1% for the richest 1% while only reducing the basic rate by 1 percentage point* for the poorest 99%.

*20% reduced to 19% is a 5% reduction.

 

[soulstyledevon]

The previous owners of our house installed 19 PV panels and 3 solar thermal panels. The PV consistently produces 3,300kWh of electricity per annum, about 75% of our annual consumption. Even today, clear skies but not hot, the solar thermal will have the water coming off the roof at 50-60 degrees and will probably heat most of the hot water tank.

Why are we not having a national scheme to install these technologies across the country? Even if the government paid for them - we ultimately pay, but most people think if the government pays it is free!

Sign me up.
I would install this tomorrow, no hestitation.

 

[soulstyledevon]

If you asked me a week ago I’d have said that “no way” would Kwarsi-Truss slash taxes by 11.1% for the richest 1% while only reducing the basic rate by 1 percentage point* for the poorest 99%.

*20% reduced to 19% is a 5% reduction.

I see Gary Neville was on the telly yesterday, outraged at the slashing of the 45% rate. Which he stands to do quite well from.
Never really been a footy ball fan, but pleased to see some of them with morals…

 

[GrumpyGranddad]

I see we got a bollocking from the IMF !

We did !!

Susannah Streeter, senior investment and markets analyst at Hargreaves Lansdown, said: "The IMF's move has added to worries that the UK is fast taking on the characteristics of an emerging market economy, and risks ditching its developed country status. It's now not only wracked with trade disruptions, an energy crisis and soaring inflation but it's also being closely monitored by international body known as the world's lender of last resort.

 

[GrumpyGranddad]

We did !!

Susannah Streeter, senior investment and markets analyst at Hargreaves Lansdown, said: "The IMF's move has added to worries that the UK is fast taking on the characteristics of an emerging market economy, and risks ditching its developed country status. It's now not only wracked with trade disruptions, an energy crisis and soaring inflation but it's also being closely monitored by international body known as the world's lender of last resort.

The market’s response in recent days/weeks is clear. FTSE 100 was over 7600 in March this year.

 

[Amarillo]

I see Gary Neville was on the telly yesterday, outraged at the slashing of the 45% rate. Which he stands to do quite well from.
Never really been a footy ball fan, but pleased to see some of them with morals…

People who benefit from this bizarre tax system we have don’t have to agree that it is a good system.

I stopped working at age 45, and rely on investment income which is taxed but I don’t have to pay NI on that income.

So why is unearned income taxed at a lower rate than earned income?

If the government was serious about levelling up it would consider the three forms of income separately:

1) earned income
2) unearned income (including gifts and inheritance)
3) capital gain

Each would have its own tax free threshold, and unearned income taxed more heavily than earned income or capital gain.

 

[andyinluton]

If you asked me a week ago I’d have said that “no way” would Kwarsi-Truss slash taxes by 11.1% for the richest 1% while only reducing the basic rate by 1 percentage point* for the poorest 99%.

*20% reduced to 19% is a 5% reduction.

Theres some seriously misleading percentages you are presenting there. No one earning over £150k has had their tax bill slashed by 11.1%

ie: earn £160k there's a reduction of tax of 5% on the £10k over £150k so a total reduction due to that cut of £500.00

However you dress it up a reduction of £500.00 is not an 11.1% slashing of taxes on a £160k income.

In fact my quick calculation Shows that that massive "11.1% slashing" would reduce the annual tax bill from £51,320 to £51,820 so its actually a 0.0098% reduction

On the other hand the poor people with only a £50,270. salary that have only had a miserly 1% cut have had their tax bill of £7,539.80 cut by £376.99 which is actually 5%

 

[Amarillo]

Theres some seriously misleading percentages you are presenting there. No one earning over £150k has had their tax bill slashed by 11.1%

ie: earn £160k there's a reduction of tax of 5% on the £10k over £150k so a total reduction due to that cut of £250.00

However you dress it up a reduction of £250.00 is not an 11.1% slashing of taxes on a £160k income.

In fact my quick calculation Shows that that massive "11.1% slashing" would reduce the annual tax bill from £51,320 to £51,070 so its actually a 0.0049% reduction

On the other hand the poor people with only a £50,270. salary that have only had a miserly 1% cut have had their tax bill of £7,539.80 cut by £376.99 which is actually 5%

And those who fall below the threshold for tax have had a 0% reduction in their tax bill.

My post was to show the perception of the Kwarsi-Truss tax cuts by the public, (5% for the richest 1% and 1% for the poorest 99%) and not as an accurate representation of facts.

However, the higher the income, the closer to 11.1% the cut will be, and the lower the income the closer to 0% the cut will be.

 

[willwander]

And those who fall below the threshold for tax have had a 0% reduction in their tax bill.

How can you cut their tax bill if they don’t pay tax?

and explain this 11.1% figure to me like I’m a footballer?

 

[andyinluton]

And those who fall below the threshold for tax have had a 0% reduction in their tax bill.

My post was to show the perception of the Kwarsi-Truss tax cuts by the public, (5% for the richest 1% and 1% for the poorest 99%) and not as an accurate representation of facts.

However, the higher the income, the closer to 11.1% the cut will be, and the lower the income the closer to 0% the cut will be.

Why keep mentioning 11.1% however high your income it will never get to 5% let alone 11.1%

 

[andyinluton]

How can you cut their tax bill if they don’t pay tax?

and explain this 11.1% figure to me like I’m a footballer?

He won't be able to explain the 11.1% its an headline snatching percentage plucked out of thin air by Amarillo so he can try and make anyone benefitting from the higher rate cut feel guilty.

 

[The Tall Luthier]

And those who fall below the threshold for tax have had a 0% reduction in their tax bill.

My post was to show the perception of the Kwarsi-Truss tax cuts by the public, (5% for the richest 1% and 1% for the poorest 99%) and not as an accurate representation of facts.

However, the higher the income, the closer to 11.1% the cut will be, and the lower the income the closer to 0% the cut will be.

Scarily, the FT did some calculations which showed that the richest 2,500 earners will share ONE BILLION pounds in tax savings.

That’s why the markets, public international politicians and IMF went do lally as it is pure economic illiteracy.

 

[andyinluton]

Scarily, the FT did some calculations which showed that the richest 2,500 earners will share ONE BILLION pounds in tax savings.

That’s why the markets, public international politicians and IMF went do lally as it is pure economic illiteracy.

So on average a £400,000 cut each from their £3.6million pound tax bill.

If that encourages more of them to keep their tax base in the UK rather than sitting in Monaco or the like surly it's a good thing.

 

[Amarillo]

He won't be able to explain the 11.1% its an headline snatching percentage plucked out of thin air by Amarillo so he can try and make anyone benefitting from the higher rate cut feel guilty.

(45-40)/45 = 1/9 ~ 0.111 = 11.1%

No, not plucked from thin air. Basic O level maths.

45% reduced to 40% is a 5 percentage point reduction but *over* an 11.1% reduction in the top rate of tax.

Consider your example of someone earning £160,000.

At 45% they would have paid £4,500 tax on the top £10,000 of their earnings.

Under the new regime, that is slashed to £4,000.

Their saving is £500.

£500 of £4,500 is *over* 11.1%.

The richest 1% of earners have had not 1%, not 5% but *over* 11.1% slashed from their top rate of tax.

And that’s the truth.

 

[willwander]

(45-40)/45 = 1/9 ~ 0.111 = 11.1%

No, not plucked from thin air. Basic O level maths.

45% reduced to 40% is a 5 percentage point reduction but *over* an 11.1% reduction in the top rate of tax.

Consider your example of someone earning £160,000.

At 45% they would have paid £4,500 tax on the top £10,000 of their earnings.

Under the new regime, that is slashed to £4,000.

Their saving is £500.

£500 of £4,500 is *over* 11.1%.

The richest 1% of earners have had not 1%, not 5% but *over* 11.1% slashed from their top rate of tax.

And that’s the truth.

Ah, get you now. fair play.

 

[willwander]

BTW The energy crisis is really hitting the middle classes, my neighbour has had to drain his hot tub.

 

[andyinluton]

(45-40)/45 = 1/9 ~ 0.111 = 11.1%

No, not plucked from thin air. Basic O level maths.

The richest 1% of earners have had not 1%, not 5% but *over* 11.1% slashed from their top rate of tax.

And that’s the truth.

As usual Amarillo you are playing with words.

Your initial post states:
"If you asked me a week ago I’d have said that “no way” would Kwarsi-Truss slash taxes by 11.1% for the richest"

Thats what I questioned & is a very different statement to:

"The richest 1% of earners have had .....11.1% slashed from their top rate of tax."

You conveniently left out the "from their top rate of tax"

There is a huge difference between slashing 11.1% off someones tax bill and slashing 11.1% off that little bit at at the top after you've already paid £50k in tax.

 

[The Tall Luthier]

So on average a £400,000 cut each from their £3.6million pound tax bill.

If that encourages more of them to keep their tax base in the UK rather than sitting in Monaco or the like surly it's a good thing.

I admire your optimism Andy.

In reality I think it means new marble flooring for their villas in Barbados and zero benefit for UK PLC

 

[Amarillo]

As usual Amarillo you are playing with words.

Your initial post states:
"If you asked me a week ago I’d have said that “no way” would Kwarsi-Truss slash taxes by 11.1% for the richest"

Thats what I questioned & is a very different statement to:

"The richest 1% of earners have had .....11.1% slashed from their top rate of tax."

You conveniently left out the "from their top rate of tax"

There is a huge difference between slashing 11.1% off someones tax bill and slashing 11.1% off that little bit at at the top after you've already paid £50k in tax.

That’s what headlines do. They grab attention. The detail is in the err detail.

But generally I agree with you, though I would say that I was playing with numbers more than words.

 

[andyinluton]

I admire your optimism Andy.

In reality I think it means new marble flooring for their villas in Barbados and zero benefit for UK PLC

Its still better than the 1970s option of taxing at 82% & high earners doing everything possible to avoid paying in the UK.

The £3.2 million tax off each of them is better than nothing! of course its only a tiny number that have that sort of income, most of the 45% tax payers were earning under 200k so the cut for them is in the hundreds rather than millions of pounds.

 

[andyinluton]

Of all the online papers I've read recently I think the Daily Mash has the best take on the value of the pound.....

THE pound is only worth less if you have the misfortune to be born a foreigner, the chancellor has assured Britain.

Kwasi Kwarteng has stated that the plummeting value of the pound is of no concern to Britons as it will still buy them the same amount of marvellous British cheeses or jams.

He continued: “Other countries say our currency is worth less. Well of course they do. They’re just jealous.

“They’re jealous of our fortitude, our grit, pluck and spunk, our visionary Brexit and our new, radical economics that will see our country roar past theirs any day now. So they do us down.

“They’ll charge us more for goods from their countries, which by definition are rubbish we don’t want. And they’d pay less for our exports, if we hadn’t cunningly anticipated that by making exporting almost impossible.

“Just ignore their sneering continental attitudes and the ridiculous posturing of Ol’ Wokie Biden. The pound is worth whatever we say it is, and I say it’s the best currency in the whole wide world.”

 

[Amarillo]

A little known fact…

If you are a property landlord you can get your tax free personal allowance increased by nearly 60% from £12,570 to over £20,000.

No national insurance to pay on the additional £7,500 income either.

 

[andyinluton]

But generally I agree with you,

I'm just printing this out & getting it framed, I think its the first time in 8 years that this has happened.

 

[The Tall Luthier]

Its still better than the 1970s option of taxing at 82% & high earners doing everything possible to avoid paying in the UK.

The £3.2 million tax off each of them is better than nothing! of course its only a tiny number that have that sort of income, most of the 45% tax payers were earning under 200k so the cut for them is in the hundreds rather than millions of pounds.

You’re gratitude at them paying tax is slightly flawed. They were already paying tax, one assumes quite happily otherwise they would have left, now they are paying less for no benefit to the uk.

It seems that the Bank of England’s intervention is a gold seal endorsement that the package of policies was economically incompetent.

Hold on tight to your pensions everyone.

 

[Amarillo]

You’re gratitude at them paying tax is slightly flawed. They were already paying tax, one assumes quite happily otherwise they would have left, now they are paying less for no benefit to the uk.

It seems that the Bank of England’s intervention is a gold seal endorsement that the package of policies was economically incompetent.

Hold on tight to your pensions everyone.

The only way I can make sense of last week’s “mini budget” is that Truss and Kwarteng are Liberal Democrat or Labour Party infiltrators of the Conservative Party doing everything they can possibly do to make sure the Tories lose the next election. And they are both near neighbours of mine along with James Cleverly.

The Greenwich gang: how the south-east London borough became the spiritual home of Trussism | Liz Truss | The Guardian

A leafy corner of the staunchly Labour district has become a hotbed of rightwing Tories backing Liz Truss for Conservative leader

amp.theguardian.com