She says, by @mammapolitico
What’s your family income? Do you get tax credits or childcare payments? Is £60,000 a year a large household income?
If ever there is a scenario that raises the temperature of political debate, this is it.
Rachel Reeves Shadow Chief Secretary to the Treasury stated this week that those earning £60,000 a year “do not feel particularly rich”. She herself earns an MP’s salary of £66,000 a year. Labour’s new vote winning policy is to pledge to not raises taxes for those earning £60,000.
So what do I think about a household income of £60,000? Let me start by stating that despite my 5 years of University education and a teaching career of some years I have never come close to earning that amount of money. I have never lived in a household even when with my ex who is also a teacher that had that kind of combined income. To me at first glance a household income of £60,000 seems like an amount of money I could manage on very easily, thank you very much. It’s all about individual circumstances though.
Lets have a quick look at the figures: Salary of £60,000. On current tax rates £13,822 a year of that would go straight to the taxman in the form of Income Tax. Another £4,414 would go to HMRC again in the form of National Insurance contributions. Actual, in your hand take home pay per month after deductions would be £3480.30. Sounds like a lot of money to me, but hitting that £60,000 a year bracket takes away some benefits available in the lower income brackets – Child Benefit and Child Tax Credits with the accompanying help towards childcare costs.
Exactly how much is an income that will make you feel rich is a question only answerable by individuals, in my opinion. It is entirely dependent upon personal circumstances. Does what money comes into the household match or exceed what needs to come out? Watching Downtown Abbey ono Sunday, with it’s storyline about a rich family fallen in to poverty, casts an interesting light on this question. Land rich and cash poor – many families on a £60,000 salary living in the South East with mortgage payments that would make my eyes water can probably draw parallels with the Crawley family situation.
The question of who to tax and what to tax them, is a question that will probably still be being asked by political parties when I am too old to worry about paying income tax (lets hope I don’t look back and read that I wrote that and think “ Fool, you should have seen it coming!’ as I hand over my “Tax because you have lived too long payment”)
I’ll leave you to mull over your opinion with this quote:
“After the government takes enough to balance the budget, the taxpayer has the job of budgeting the balance.”
He says, by @ADadCalledSpen
Read a thing. I should stop reading things really because they prompt me to write things. Or get angry. Or both.
So, Labour are considering a tax break for those who earn under £60,000 a year because this income doesn’t make one rich.
Contentious issue. Some might say this sort of income is that of a rich person. Or a richer person. Especially people who don’t have a realistic chance of ever earning this amount. Regional differences, salary expectations, costs of living etc mean that £60,000 a year is a lot to some, and yet not so much to others.
I know it’s not the centre of the universe but I will talk about it as I’m from there, lived there and do live there so it’s a region I know well, so forgive the London centric-ness.
London. It’s expensive to live in London. The cost of travel, the cost of accommodation, the cost of childcare. All this goes out, at a rate of knots, while your income stays pretty much the same. The cost of living now is much higher and so this, rising fuel bills, the cost of FOOD and petrol going up each time you blink and… printer cartridges. We all need them and yet they are to most expensive thing per gm than anything on this planet. The street value of printer ink is higher than cocaine. But I digress…
You work full-time. Have three children. Have to pay for childcare, housing, council tax, utilities, food, travel to and from this place which pays you this much and so… what do you have left? Apart from a vague feeling of working to survive, and a feeling of worry about expenditure not matching up to income. A single mum in London earning £60,000 a year with lots of outgoings is in a very different position to a 30-year-old with no dependents earning the same amount.
£60,000 a year. Yo’ is minted man!
No. I don’t think so.
In London or Edinburgh, it’s harder than… dunno, living in Leeds or thereabouts, or in Bristol or Stoke On Trent. Because house prices/housing costs are lower, so mortgage payments or rent will be lower, as will council tax. Maybe childcare costs too. £60,000 a year outside of London may stretch further. It might be a good income and if that’s you, then I’d say you were doing well.
But an income of £60,000 a year. Does this make you rich? Or are the Labour party just trying to claw back a bit of the voting populace with tactics that appeal to the largest portion of the population, those earning less than this amount.
Or am I just playing Devil’s Avocado?
I guess the Labour party have to do something to win back voters. Is it realistic or just a cynical appeal for votes come party conference time?
Please let us know what you think. Does an income of £60,000 a year make you rich?
Thanks for reading and please leave your comments and thoughts in our comments slit. £60,000 a year. Would it be enough for you thank you very much? Please let us know what you think.