Posted by A tweet the other day got me thinking about tax rates and how they effect us. The tweet was simple and read like this:
It’s abhorrent that people earning £35,000 + a year are subject to 40% income tax. It’s scandalous and punishing effort
Just to give credit, the tweet was by Sam Baxter.
Yes it is pretty scandalous that the higher rate of tax is that high at that low an income. I don’t really have a problem paying that much tax though if I know it is going to do some good. When you take into account allowances etc the rate is truly over £40k but then again with VAT, NI and all the other taxes we pay you are giving away over 50% of your salary at the higher band.
So why are we handing this cash over, and what good is it doing us. Well for the most part, if you are paying this rate of tax you see little of it. Your NI pays your NHS fees (supposedly) so you are getting that back if you go to hospital. Your bins get collected out of your council tax, police are paid for in a large part by that as well. So where does it all go.
I think this is what annoys me the most. A large proportion of the tax you pay goes out again in benefits. Yes I witter on about benefits a lot I know but there are reasons for that and this is one of them. Someone I know recently told me about their dad who is suffering from cancer. He can hardly support himself and his wife was tiring from the effort of helping him 24/7. They have never claimed a penny from the state and their attitude was “someone else needs it more than us”. While that may be true, the sad fact is that many people who are far less needy are taking advantage every day. In the end they were convinced to take the benefits they are entitled to and lead a happier life because of it.
If only more people had this attitude I feel we would live in a more equal society. Take it when you really need it. If you can do anything in your power not to take it, do it. Unfortunately there are far too many people out there that are happy to take whatever is offered without giving a second to it. Happily living their lives in the knowledge that they will never have to work because these higher rate tax payers will sort everything out for them in the long run. This is where the benefit system falls down and where we need to look at how we are dishing the money out. The welfare reform bill is a big step int he right direction. Lets hope it keeps on track.