This is what happens after years of #deficitspending and #economic boom when you let #collectivists run your country. The history always repeats itself, but think about having up to 95% tax on your income? Welcome to England in the mid 1900s. 20th century From the Second World War UK income tax has changed over the years. Originally it taxed a persons income regardless of who was beneficially entitled[clarification needed] to that income, but now a person owes tax only on income to which he or she is beneficially entitled. Most companies were taken out of the income tax net in 1965 when corporation tax was introduced. These changes were consolidated by the Income and Corporation Taxes Act 1970. Also the schedules under which tax is levied have changed. Schedule B was abolished in 1988, Schedule C in 1996 and Schedule E in 2003. For income tax purposes, the remaining schedules were superseded by the Income Tax (Trading and Other Income) Act 2005, which also repealed Schedule F completely. The Schedular system and Schedules A and D still remain in force for corporation tax. The highest rate of income tax peaked in the Second World War at 99.25%. It was then slightly reduced and was around 90% through the 1950s and 60s. Tax revenues as a percentage of GDP for the U.K. in comparison to the OECD and the EU 15. In 1971 the top rate of income tax on earned income was cut to 75%. A surcharge of 15% kept the top rate on investment income at 90%.In 1974 the cut was partly reversed and the top rate on earned income was raised to 83%. With the investment income surcharge this raised the top rate on investment income to 98%, the highest permanent rate since the war. This applied to incomes over £20,000 (£181,858 as of 2015). In 1974 750,000 people were liable to pay the top-rate of income tax. Margaret Thatcher, who favoured indirect taxation, reduced personal income tax rates during the 1980s. In the first budget after her election victory in 1979, the top rate was reduced from 83% to 60% and the basic rate from 33% to 30%. The basic rate was also cut for three successive budgets - to 29% in the 1986 budget, 27% in 1987 and to 25% in 1988. The top rate of income tax was cut to 40% in the 1988 budget. The investment income surcharge was abolished in 1985. Under the government of John Major the basic rate was reduced in stages to 23% by 1997. Under Labour chancellor Gordon Brown it was further reduced in stages to 20% by 2007. As the basic rate stood at 35% in 1976, it has been reduced by 15% since then. However, this reduction has been largely offset by increases in other taxes such as National Insurance contributions and Value Added Tax (VAT). In 2010 a new top rate of 50% was introduced on income over £150,000 p.a. In the 2012 budget this rate was cut to 45% with effect from April 6, 2013.
Posted on: Sun, 04 Jan 2015 16:51:53 +0000
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