Jump to content

Tax - What You Pay and What You Get Back


Gemmel
 Share

Recommended Posts

"You pay £27,221 more in tax than you receive in benefits and services

Your household is in the tenth decile, where one has the least disposable income and ten has the most. Households from the 7th decile and above, on average, pay more in tax than they receive in benefits and services."

 

That's us nasty Tories for you.....always giving more than we receive....

Edited by trousers
Link to comment
Share on other sites

http://www.bbc.co.uk/news/uk-politics-15843746

 

We've also produced a list of things you (probably) never knew about your money and how they spend it: 1. More Of Us Are

 

1. Winners Than Losers

Some 60% of households are net recipients from the Treasury - though it may not always feel that way. The top 10% of households contribute, on average, five times more than they get back. Our tax and spend calculator can't give you an exact account of your individual circumstances, but it will give you a ballpark figure of what households like yours pay in tax, and get back in benefits and services. It's not perfect, but it does give us a fascinating insight into whether we're net winners or losers.

2. The Big Three Are Taking a Growing Share of Your Money

Public spending is increasingly dominated by three big spending areas: social security, health and education. Together, they took up 60% of the total spending pie in 2010-11. Back in 1978-9 that figure was 45% (source: IFS). That's because there's been a shift of resources away from areas like defence, and towards the welfare state in its broadest sense, which has been happening for decades - under both Labour and the Tories.

3. Peters Stringfellow and Mandelson Agree on Something…

Both think that Winter Fuel Allowance - the benefit the government currently pays to all pensioners at this time of year to help with their fuel bills - should be changed. Peter Stringfellow tells me he was horrified to find he was getting an extra £200. Peter Mandelson agrees that the problem with the benefit is that it gives "a reasonably significant amount of money" to people who don't need it. So the two Peters agree, but will our frontbench politicians? Watch this debate run and run.

4. National Insurance and Income Tax are actually paying for the same things

Many of us still think that National Insurance pays exclusively for our pensions and health. In fact, it all effectively goes into the same pot for general expenditure - though our confusion is often rather convenient for politicians.

5. The Rich Pay More Than You Might Think

The top 1% of earners - just 300,000 people - pay 27% of all income tax. Of course, many people believe that the rich should pay more, but identifying who's "rich" - and getting them to stump up - is fiendishly difficult for our politicians.

6. The Difference Between Dog Food and Rabbit Food is…

You pay VAT on dog biscuits, but you don't pay VAT on rabbit food. It's just one example of the bewildering complexity of our tax system - with which we've had some real fun in the tax film. But woe betide any well-meaning politician with big ideas about simplifying it.

7. Debt Interest Gets More Than Defence

In 2010-11, we spent more paying interest on our national debt than we did defending the realm. It's worth remembering that there's an important difference between national debt - which is best thought of as the giant rolling overdraft of money we've borrowed down the years, often to pay for wars - and the deficit, which is the gap between spending and tax in any given year. That debt/deficit distinction is often confused in the heat of political debate.

8. Deficits Are The Norm

Deficits have been a feature of British political life for decades. In the early 1990s, for instance, John Major's Conservative government ran up a deficit of more than £50bn, or £77bn in today's money. The deficit which the coalition inherited is much bigger, but spending money we haven't got is nothing new.

9. There's More Trouble Down The Line

In a rather gloomy November, you wouldn't expect me to be bringing you good news, would you? The independent Office of Budget Responsibility (OBR) has predicted a possible double whammy for our politicians in decades to come: that our ageing population will see even more pressure on big spending areas like pensions and health, and that tax revenues from areas like fuel duty and North Sea Oil are likely to decline. As if George Osborne hasn't got enough to worry about right now.

10. We Need A More Honest Debate

For much of the last 30 years, our politicians have promised higher spending, and lower taxes - and we've encouraged them. But the future pressures on spending are such that sooner or later all of us - journalists, voters, politicians - need to have a more honest debate about how our money's spent. That's likely to mean either accepting that we should do more for ourselves, or that we'll have to foot the bill. That's the really big thing I've taken away from making the series. I hope you enjoy the films - and that they kick-start that debate.

Link to comment
Share on other sites

"You pay £27,221 more in tax than you receive in benefits and services

Your household is in the tenth decile, where one has the least disposable income and ten has the most. Households from the 7th decile and above, on average, pay more in tax than they receive in benefits and services."

 

That's us nasty Tories for you.....always giving more than we receive....

 

Same for me

 

And as I live in a house with 2 incomes I would expect to pay more tax than receive in benefits. Isnt that how this working and taxing malarky thing works? Im confused...

Link to comment
Share on other sites

I would expect to pay more tax than receive in benefits. Isnt that how this working and taxing malarky thing works?

 

It's not just a tax vs benefits ratio though. They are comparing tax amounts with a combination of benefits AND value of the services a household receives. I, for example, receive no benefits but my chart on the BBC website shows that I received c.6k worth of "services" from the state per annum.

Link to comment
Share on other sites

We are apparently out of pocket, all things considered.

 

But we dont mind because we can see that, for example, we are 'paying' for the grandchildrens' education. And we're happy about that. We also know that we'll be grateful for that overpayment because one day we might require very expensive health treatment.

 

It's just like an insurance policy really. I don't like the fact that my insurance premium is as high as it is because of other drivers, but one day I might be grateful that I can replace my car / sue the other driver no matter how much it costs.

Link to comment
Share on other sites

We are apparently out of pocket, all things considered.

 

But we dont mind because we can see that, for example, we are 'paying' for the grandchildrens' education. And we're happy about that. We also know that we'll be grateful for that overpayment because one day we might require very expensive health treatment.

 

It's just like an insurance policy really. I don't like the fact that my insurance premium is as high as it is because of other drivers, but one day I might be grateful that I can replace my car / sue the other driver no matter how much it costs.

 

So long as there's enough left over for the ingredients for Heston's Tagliata with rocket and Parmesan salad eh...

 

Working class people, without the budget for such an extravagant Islingtonesque lifestyle might not agree though.

Link to comment
Share on other sites

On average, people with household incomes similar to you have an annual balance of...

£-1,900

Your household is in the seventh decile, where one has the least disposable income and ten has the most. Households from the 7th decile and above, on average, pay more in tax than they receive in benefits and services.

 

Ohhh my family actualy contribute more than we take (ok not by much) that makes me feel all warm and fuzzy. It means I can also complain about scroungers and not feel bad about it. Wierd thing is we feel poor yet if that article is anything to go by we're quite well off **** knows how people in the 1st or 2nd decile actually afford to live?

Link to comment
Share on other sites

What a load of shiete.

 

I thought for a minute that this was something the school had set my 12 year old to do.I take it we are paying for someone to design this nonsense out of our licence fee?

 

To suggest that all you need to do is put your income, age ,and number of family members, to get a true reflection of your contribution is laughable.

Link to comment
Share on other sites

What a load of shiete.

 

I thought for a minute that this was something the school had set my 12 year old to do.I take it we are paying for someone to design this nonsense out of our licence fee?

 

To suggest that all you need to do is put your income, age ,and number of family members, to get a true reflection of your contribution is laughable.

 

You didn't score very well then..................:p

Link to comment
Share on other sites

What a load of shiete.

 

I thought for a minute that this was something the school had set my 12 year old to do.I take it we are paying for someone to design this nonsense out of our licence fee?

 

To suggest that all you need to do is put your income, age ,and number of family members, to get a true reflection of your contribution is laughable.

 

True there are other things to consider like whether you've had to use the NHS etc

Link to comment
Share on other sites

Surely this also needs to include how much time you've spent in education as well? If you left school at 16 and got a job compared with someone who went on to study at university this obviously has a massive impact on how much tax money you've received. What a load of nonsense that calculator is.

Link to comment
Share on other sites

Surely this also needs to include how much time you've spent in education as well? If you left school at 16 and got a job compared with someone who went on to study at university this obviously has a massive impact on how much tax money you've received. What a load of nonsense that calculator is.

 

It just calculates a rough average as far as I can tell. Can't see where it's claiming individual statistical accuracy.

Link to comment
Share on other sites

Surely this also needs to include how much time you've spent in education as well? If you left school at 16 and got a job compared with someone who went on to study at university this obviously has a massive impact on how much tax money you've received. What a load of nonsense that calculator is.

 

Most likely though those that go to university earn more money in later life (and pay more tax) than those who go into work at 16 and pay tax earlier but are paid less in later life. As trousers points out it's a rough guide there will always be exceptions to the rule I'm sure.

Link to comment
Share on other sites

Most likely though those that go to university earn more money in later life (and pay more tax) than those who go into work at 16 and pay tax earlier but are paid less in later life.

 

Hush about that young man! Before you know it you'll have the politicians coming up with the wacky idea that students should contribute towards the cost of their 'further education' once they get a decent job. And that would be bonkers...

Link to comment
Share on other sites

On average, people with household incomes similar to yours have an annual balance of... £-27,221 Your household is in the tenth decile, where one has the least disposable income and ten has the most. Households from the 7th decile and above, on average, pay more in tax than they receive in benefits and services.

 

Ouch.

Link to comment
Share on other sites

Create an account or sign in to comment

You need to be a member in order to leave a comment

Create an account

Sign up for a new account in our community. It's easy!

Register a new account

Sign in

Already have an account? Sign in here.

Sign In Now
 Share

×
×
  • Create New...