The immeasurable joy of COUNCIL TAX

New York State income tax ranges from 4-7%. New York City tax ranges from 3-4%. My council tax is about 4% of my gross household income.

I'm originally from TX and we let our state lotto collect the taxes for us.  Since I don't play, I went from 0 percent to about 4.5 percent - I get it - I have to pay it and that's that.

Still sucks.

Does the amount of Council Tax you pay offset any of your taxable earnings?

I went from who knows what percent in CA, NY, and VTto 0% here. Over there it didn't matter what I made, I was paying property taxes (either directly or through rent), and state and local income tax for the time I was working (since I was 19).

Now that I'm a student over here, I pay nothing. Even when I was a student in the US, I was still getting hit with property taxes. (And in VT, it didn't even cover trash collection -- that was all private!)

Does the amount of Council Tax you pay offset any of your taxable earnings?

No.


Vicky

This feels a lot like double taxation!  I wonder if I will be able to offset my US taxable income with some of the taxes I pay here...

Well, council tax is based on the value of your property in 1991.  I don't know why it's 1991, but I'm sure there's a good reason!   

A slightly late response ( <-- that's British understatement at work again!), but it's 1991 because that's when the Council Tax came into being in its current form, after the failed Poll Tax which had in turn been introduced to replace the old rates system, as Vicky just noted above.

Singles also get a 25% discount, which means my husband's bill went up 25% just because I moved in.

Don't tell him, but his bill actually went up by 33-1/3%.     

-If outside of London - funding local council and possibly county councils to go on jollies, overpay their officers, and duplicate work

North Norfolk District Council and Norfolk County Council to a tee.

-Poor road maintenence

I'd settle for even poor maintenance.  It would be better than none.   

-Community Support Officers, ie those guys who look like real policement but have no powers

Now colloquially known as CHIMPS -- Can't Help In Most Policing Situations.

Council tax is just getting out of hand.  In the last 10 to 11 years it has more than doubled.   And to add to Vicky's list, in this area for all the extra money which supposedly goes on local services, refuse collections are now down from weekly to only once every two weeks.

Council tax is just getting out of hand.  In the last 10 to 11 years it has more than doubled.   And to add to Vicky's list, in this area for all the extra money which supposedly goes on local services, refuse collections are now down from weekly to only once every two weeks.

The overall level of tax has increased substantially because the council tax only collects 40% of local spending but the levels that can be charged are mostly pre-determined by Central Government.  The increase is solely the responsibilty of Gordon Brown.

The good news is that a US person can claim the ever-growing council tax as part of the foreign housing cost on Form 2555!

The increase is solely the responsibilty of Gordon Brown.

Which just goes to highlight how much we're being ripped off by central government as well. 

I reckon it's about time for a little tea party......

I reckon it's about time for a little tea party......

Or a small fireworks display...

 


Vicky

Or a small fireworks display...

 


Vicky

 

When was the last time a tax was cut or eliminated here? Theoretically, at least, tax rates should vary with economic conditions, right?

It doesn't happen very often in the U.S. but it does happen sometimes: like the elimination of city sales tax on apparrel and shoe purchases under $108 in New York and those crazy Bush tax cuts (which I don't support but it's nice to know the tax rate doesn't always move in one direction!)

Or a small fireworks display...

 


Vicky

We still have the Bloody Tower you know

We still have the Bloody Tower you know

Unfortunately we still have the bloody government, too!    

When was the last time a tax was cut or eliminated here?

And on the rare occasions that it does happen, five other taxes usually increase which more than wipe out any saving.   

The last time a budget included tax cuts was the one that introduced the new tax band of 10 per cent.   A great idea....which has now been abolished, with (to my mind) no logical explanation. 

http://business.timesonline.co.uk/tol/business/economics/budget_2008/article3543675.ece

Vicky

The last time a budget included tax cuts was the one that introduced the new tax band of 10 per cent.   A great idea....which has now been abolished, with (to my mind) no logical explanation. 

http://business.timesonline.co.uk/tol/business/economics/budget_2008/article3543675.ece

Vicky

Ok I give. Why is Labor screwing what has to be their main constituency like this?

The last time a budget included tax cuts was the one that introduced the new tax band of 10 per cent.

And let's not forget that income tax was introduced as a temporary measure -- Over two centuries ago!   

Maybe "New Labour" cronies really believe that some people are stupid enough to believe the lies about "helping the worst off" by reducing the standard rate of income tax slightly while abolishing the 10% rate.