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If I’m understanding correctly, that makes the effective marginal tax rate between 100k and 125k higher than after 125k? Feels kind of crazy

• MattPalmer1086 4y ago
  That's correct. Most people in the UK have no idea that there is an effective 60% tax rate either. It's not an official tax band. But it's the kind of tax raising governments love doing, by stealth. Don't put up the tax band thresholds causing more people to fall into the higher bands over time. They also remove child tax credit as you earn more. And remove your personal tax allowance gradually over 100k.
  • dan-robertson 4y ago
    > And remove your personal tax allowance gradually over 100k. Well the that’s the thing this thread is all about so that isn’t an additional thing.
    • MattPalmer1086 4y ago
      Yeah, bad phrasing! I'm sure there are other examples of stealth taxation.