Minimum wage vs pension & benefits levels

[katedave]

how about people like my dad who worked non stop from 14 years but never saw 65 goverment saved millions through people like this. im 65 myself and enjoying my retirement i worked from 15 years never without a job and retired at 63, im getting something my dad never got and feel i earnt my retirement.

[Cyclone]

We have a flat rate of tax of 31% for people earning more than £125 per week.

 

At which point benefits have been withdrawn at an EMTR of 100%, housing benefit and council tax benefit at 85%, when NI is payable it becomes 96%.

 

And a few unfortunate few have to pay NI, and 20% tax, whilst having HB and CTB reduced, leading to an EMTR of an astonishing 116%.

 

You must have forgotten about the 40% and 50% income tax brackets...

 

And yes, the benefit trap needs modifying (and is being with the universal benefit), according to what has been promised working will always be beneficial.

[ukdobby]

how about people like my dad who worked non stop from 14 years but never saw 65 goverment saved millions through people like this. im 65 myself and enjoying my retirement i worked from 15 years never without a job and retired at 63, im getting something my dad never got and feel i earnt my retirement.

 

Hear hear,Ive done 41 years none stop up to now,never without a job and because I paid into a pension my self if I lost my job now I wouldn't get any help from the goverment what so-ever,something wrong here me thinks:huh:

[Cyclone]

You'll get your state pension...

[ukdobby]

Not till I'm 66.

[anywebsite]

If you earn £6475 on minimum wage you start to pay tax, and NI.

That's the equivalent of £124.52pw. Or 21.5 hours worked at NMW.

 

Pension credit pays more than this, without taking into account HB and CTB, disability benefits etc.

These payments come from the communal pot. People can earn less an be contributing to the pot, for many it is uneconomical to contribute to the pot! Even those on the lowest rate of JSA, when HB and CTB come into play.

 

Tax is too high for the poor, CTB is high and regressive upon the poor, HB is a complete scam and keeps the poor it their place whilst benefiting the BTL class at all our expense

 

A flat rate of benefit for all (including billionaires) and a flat rate of tax would be much fairer for everyone in society.

 

The flat rate of benefit stops people from starving, the flat rate of tax, allows all the opportunity to escape poverty, rather than being condemned to it via regressive taxation.

 

A flat rate of tax is regressive because the poor need to spend a higher proportion of their money on essentials. If we had a flat rate, there wouldn't be a higher rate of income tax & the rich would pay less than they do now, so it'd have to hit poorer people harder to collect the same tax.

 

Instead, the allowances (for tax & ni) should be raised to about £10,000, a new lower rate for 10-15k & then another higher rate of tax to pay for it all. I think that'd be closer to the result you seem to want.

[Cyclone]

And strangely enough raising the allowance to 10k is exactly what the condems have said they'll do over the period of this government.

[Rupert_Baehr]

. .

[anywebsite]

And strangely enough raising the allowance to 10k is exactly what the condems have said they'll do over the period of this government.

 

But they're funding it with a VAT increase, the most regressive tax we have.

[Cyclone]

That's true, I think we'd be better off reducing VAT and increasing the headline rate for every bracket of income tax. But I'm not in charge.