#9865342, By binster Ed Miliband the next PM for the United Kingdom

  • binster 24 Sep 2013 23:02:05 574 posts
    Seen 4 days ago
    Registered 9 years ago
    robc84 wrote:
    monkman76 wrote:
    robc84 wrote:
    TheSaint wrote:
    monkman76 wrote:
    @boo In your example the higher earner pays around 7.3 times more tax, on 5x the income. Seems fair enough to me.
    That doesn't sound right. Are you taking personal allowance into account?
    Person A would only pay tax on around 2.5k due to personal allowance covering most of their earnings.

    Person B ends up paying nearly 30 times as much tax.

    Not saying it's right or wrong btw, just pointing out the facts :)
    Actually 18 times, as boo rightly stated in the first place :)
    Not according to my calculations... ;)

    Actually to be fair, he is right. I put in the wrong PA. My bad :redface:

    I'm probably woefully late to this, but Boo's original example (on the first page) of 12k versus 60k just feels unfair.

    The tax free level is 9440. If someone was earning 9440 they'd pay no tax (according to http://www.listentotaxman.com/) meaning any increase in wage could be compared as paying infinity times more tax. 12 is pretty close to that tax free level.

    Argument against this approach to tax begs the question of how would you fix the imbalance - and considering how much of the 12k earner's wage is tax free, the only answer would seem to be to make them pay more tax, thus balancing out with the higher earner. Doesn't sound like it helps much.

    Anyway, carry on.

    Edited by binster at 23:10:10 24-09-2013
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