Most outside the UK view it as a very class based society. I feel that this is out of date and the reason is social democracy and political bureaucracy.
My premise is that ultimately, a middle class lifestyle needs to be funded. You may have been raised middle class, but if you can't afford it yourself, you are in effect the nouveau pauvre. My figures will not be relevant to people without children.
Thirty years ago, the middle class used to enjoy major tax benefits. There was mortgage tax relief, worth up to £20k today, free education at Grammar Schools that today costs someone with two kids £50k a year, tax free company cars that today cost up to £20k, and capital gains on trusts including pensions that has cost people perhaps more.
Thirty years ago you could have benefits worth more than £90k. Today you are classified as wealthy, a top rate tax payer if you earn just £40k. This amount will not pay for a middle class lifestyle. A middle class house is around £1 million, £40k will give you a mortgage of only £150k, a UK public school cost £50k a year of pre tax income.
In effect, only maybe 2% of the UK can afford the old Middle class lifestyle. The Upper Middle class are the new Middle Class.
The problem comes when you ask where the money has gone. I have to conclude that only half of it has genuinely raised the living standards of the poorest third of society, the rest has been wasted in expensive government. When government takes money, it makes some people a lot poorer than it makes others wealthier. I think that the challenge is to find a better way to redistribute wealth, but I definitely do not think that it should be through direct taxation.
The US should have this as their top issue at the upcoming election. From this outsiders POV, they should raise tax, or cut benefits to the richest to pay for services above and beyond the 35% of GDP that they take to supply the current level of Public Service. But somewhere between the current level and them50% that Euro Govs take is the slippery slope of no coming back.
My premise is that ultimately, a middle class lifestyle needs to be funded. You may have been raised middle class, but if you can't afford it yourself, you are in effect the nouveau pauvre. My figures will not be relevant to people without children.
Thirty years ago, the middle class used to enjoy major tax benefits. There was mortgage tax relief, worth up to £20k today, free education at Grammar Schools that today costs someone with two kids £50k a year, tax free company cars that today cost up to £20k, and capital gains on trusts including pensions that has cost people perhaps more.
Thirty years ago you could have benefits worth more than £90k. Today you are classified as wealthy, a top rate tax payer if you earn just £40k. This amount will not pay for a middle class lifestyle. A middle class house is around £1 million, £40k will give you a mortgage of only £150k, a UK public school cost £50k a year of pre tax income.
In effect, only maybe 2% of the UK can afford the old Middle class lifestyle. The Upper Middle class are the new Middle Class.
The problem comes when you ask where the money has gone. I have to conclude that only half of it has genuinely raised the living standards of the poorest third of society, the rest has been wasted in expensive government. When government takes money, it makes some people a lot poorer than it makes others wealthier. I think that the challenge is to find a better way to redistribute wealth, but I definitely do not think that it should be through direct taxation.
The US should have this as their top issue at the upcoming election. From this outsiders POV, they should raise tax, or cut benefits to the richest to pay for services above and beyond the 35% of GDP that they take to supply the current level of Public Service. But somewhere between the current level and them50% that Euro Govs take is the slippery slope of no coming back.