http://richard-wilkinson.co.uk/2008/11/25/so-vat-is-reduced/ Just another WordPress weblog Sat, 31 Jul 2010 11:56:56 +0000 http://wordpress.org/?v=2.6.3 http://richard-wilkinson.co.uk/2008/11/25/so-vat-is-reduced/#comment-318 Wille Tue, 25 Nov 2008 01:10:05 +0000 http://richard-wilkinson.co.uk/?p=66#comment-318 Well, dividend tax is increased from 22.5% to 37.5% for "high income earners", increasing marginal tax rates from 39% to 52%, the new 45% rate coupled with NI changes (which ALL taxpayers will pay btw) takes top marginal tax rate up from 41% to 61%. Of course you may say "doesn't affect me", but neither did the 40% band when it was introduced. Inflation general pay rises coupled with lack of increases in allowances will make sure most of us pay 61% in 10-15 years time.. (and despite the talk of deflation, an inflation bomb of epic proportions is waiting a few years on) Well, dividend tax is increased from 22.5% to 37.5% for “high income earners”, increasing marginal tax rates from 39% to 52%, the new 45% rate coupled with NI changes (which ALL taxpayers will pay btw) takes top marginal tax rate up from 41% to 61%.
Of course you may say “doesn’t affect me”, but neither did the 40% band when it was introduced. Inflation general pay rises coupled with lack of increases in allowances will make sure most of us pay 61% in 10-15 years time..
(and despite the talk of deflation, an inflation bomb of epic proportions is waiting a few years on)

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