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Re:One million cancel broadband as living costs rise (UK) by koolba on Thursday May 18, 2023 @01:17PM (#35991166)
With a 45% tax rate and a 20% VAT, something that costs $1 would require an income of $2.18.
Re:One million cancel broadband as living costs rise (UK) by skippyboxedhero on Thursday May 18, 2023 @01:26PM (#35991282)
No, it wouldn't because when you pay tax your money isn't being flushed down the toilet. You don't understand at a fundamental level how the govt works in the UK.
Re:One million cancel broadband as living costs rise (UK) by bilekas on Thursday May 18, 2023 @01:29PM (#35991327)
This has nothing to do with the government policies.. it's simple math.
Re:One million cancel broadband as living costs rise (UK) by Retric on Thursday May 18, 2023 @01:45PM (#35991545)
If you’re making 50k, paying or not paying health insurance matters.

The US suffers from both a high tax burden and poor services. We just tend to nickel and dime our taxes more but it doesn’t really matter if you’re paying 1$ to the feds in income taxes, pay 1$ to use a state’s toll road, or 1$ to a “fee” your town tacks on the water bill.

Looking at total government spending as a percentage of GDP doesn’t show differences in services but it does show just what it all costs.

Re:One million cancel broadband as living costs rise (UK) by 11101010001100 on Thursday May 18, 2023 @02:20PM (#35991998)
Let's just mint that 1T coin and solve the simple math.
Re:One million cancel broadband as living costs rise (UK) by zamnos on Thursday May 18, 2023 @03:01PM (#35992547)
If people are getting the math wrong (as is what happened here) then maybe the math isn't so simple?
Re:One million cancel broadband as living costs rise (UK) by skippyboxedhero on Thursday May 18, 2023 @04:57PM (#35993952)
Simple math that you got wrong. Do you understand that 45% is a marginal rate?

And yes, it does have everything to do with govt policies because you are getting value back.

It is like saying taxes are high in Nordic countries, ignoring the fact that most of what you pay is returned to you. Saying that doesn't impact demand or the price level is not accurate, and misunderstands (again) at a fundamental level how govt operates.

Re:One million cancel broadband as living costs rise (UK) by dukeyukey on Thursday May 18, 2023 @02:08PM (#35991842)
Although the 45% is only applied to income above £120,000 and VAT either doesn't apply or is reduced to 5% on stuff like (most) food, rent, utilities, children's clothes, and loads more.

So what you're saying is pretty wrong.

Re:One million cancel broadband as living costs rise (UK) by Goz3rr on Thursday May 18, 2023 @02:09PM (#35991852)
listed prices include VAT pretty much everywhere I've been to in the world, other than the US. If something says it costs €1 or £1 then you're paying €1 or £1 for it at the checkout.
Re:One million cancel broadband as living costs rise (UK) by koolba on Thursday May 18, 2023 @03:26PM (#35992839)
If the tax is included in the price, then you’re get less than $1 of the good or service as it’s already baked into that price.

For example with a 20% VAT, a $1 priced item is really an $.83 item, and to pay for it at a 45% tax bracket would require $1.81 of income.

The numbers themselves are meaningless. Only the total ratio of income required to goods received is important, and it remains unchanged.

Re:One million cancel broadband as living costs rise (UK) by monkeynotes on Thursday May 18, 2023 @02:44PM (#35992336)
Isn't this basically how all economies work? You get taxed on your paycheck and then on purchases too. It's not unique to the UK to recognize taxes diminish your purchasing power.

In Canada tax rates are similar, although we do have lower VAT. In other EU countries income tax is more aggressive but they have more social benefits.

Re:One million cancel broadband as living costs rise (UK) by larksimian on Thursday May 18, 2023 @02:47PM (#35992373)
He's not taxed at 45% he just doesn't understand progressive taxation. You'd need to make like 1 million a year or more for the effective rate to be 45% i think.
Re:One million cancel broadband as living costs rise (UK) by gpderetta on Thursday May 18, 2023 @03:38PM (#35992999)
Well yes, including NI the marginal tax rate is 47%, so you can only asymptotically reach it.

But your effective tax rate is already 40% at 125k.