Lootman wrote:Nimrod103 wrote:I feel the same way, and I presume this is because GDP per capita is pre-tax, while during the periods in question tax rates have risen sharply, particularly for the productive segment of the workforce.
I actually do feel better off than 5/10 years ago. But a big part of that might be that investment income is not as punitively taxed as employment income. Insofar as that may change with Labour, then perhaps the only societal group who are making gains (broadly, TLF-type people) might also feel the pinch.
So yes, taxes are an issue. And the huge cost of welfare and "free stuff" could make the rich poorer whilst not ultimately doing much for the poor.
I haven’t time to do the research but I’m pretty sure tax rates for higher earners went up more during Labour administrations. But in recent budgets, taxation of investment and rental incomes has been increased considerably and will go up substantially over the next couple of years, and this under what purports to be a Tory government. Abolishing IR35 also has a widespread effect. These things are likely to get worse under a future Labour administration perhaps combined with increases in IHT and a capital transfer tax or CGT on residences. The need for tax income by the state is insatiable, and combined with inevitable rises in the price of green energy, everyone will be feeling a lot poorer in 5 years. And I think the burden will be most heavily laid upon those with skills and/or assets, because the poor have to be protected.