I'm sure I'm not the only one who doesn't mind paying income tax, and due to a change in role I'll have to pay higher rate tax on a bit of it. That seems correct to me as I can afford that tax.
Why is tax seen as a bad thing?
Is it mainly to do with how we see our taxes spent or wasted that turns people against tax, or is it deeper than that and the idea of any kind of tax is seen as wrong?
Most people don't mind paying tax but its too easy to focus on simple equations of rich pay more without ever understanding that does not necessarily mean more tax comes into the pot.
Its like running a machine at 100% in theory will give you more output.........but in reality running it at 75% will probably deliver more in the long term, with less breakdowns or stoppages........yet when I worked in food factories I was continually disciplined for running machines at lower than 95% by loony production managers that despite getting more output insisted the machines be run at no lower than 95% and you can guess the results. Quite literally I was in trouble for getting better results than they could achieve because of their pig ignorance and crazy logic! And up held by managers as well. Teams used to love it when they saw me run the machine because despite getting more out, it was a calm, smooth well paced day with good numbers. When someone else was there they knew it would be a day of stop start and probably compulsory overtime to reach targets. But hey ho, I woke up one morning after another disciplinary and decided I was not going back anymore and went back into offices earning more money a week later.
Tax is the same. we were taking in more tax when the higher rate was lower. raising it is a "shoot yourself in the foot" event that creates create headlines that has people nodding their heads but achieves the opposite in the end.
Look at the 70s. uber tax levels on the rich, economically we were bankrupt. Thatcher period drastically reduced the high rate of tax, same with Reagan. economies boomed. Blair reduced the top rate. It was only raised in the last months of New Labour and then of course they called out the Tories for lowering it again.
Boom times have co-incided with lowering those rates. Simplistic vision but at the end of the day thats how it is.
If you want headlines then "Rolling Stones ran away from the UK to avoid taxes." The truth? top rate of tax was so high that they could not earn enough to pay back taxes they owed so they left the UK to pay less tax and that enabled them to repay what they owed. People are not interested in truths, just the headlines.
My wife stupidly went back to work half way through a tax year in 2022! In a flip 6 months we went from qualifying for tax credits to a 2 earner household and HMRC demanded a £4500 repayment of "overpayment of tax credits." Yes, we went from a £9000 yearly tax credit payment to zero because she now earned an extra £10000 in the latter 6 months of that year. She basically worked for 6 months for £1000 and we are now repaying that £4500 back.
Not really a problem. I am paying it off over 12 months. However its annoying that it wasn't a case of "you don't qualify anymore, no more money" it is annoying that she works for 6 months for £1000 more than we were already getting. But I am paying it.
Rich people actually pay the vast majority of the tax pot already. raising it and raising it is just asking for a return to the "good old days." They should close loopholes not simplistically hammer the rich. It only ends up hurting those lower down in the end.