| The moral bankruptcy of the the Coalition Government is laid bare by this analysis of the forthcoming tax changes. The Government’s flagship policy of raising income-tax thresholds has been trumpeted by the Liberal Democrats as their main achievement since the Coalition was formed last year and a major boost for the low-paid. But they are now shown to be either utterly inept at checking over the small print produced by their Tory partners, or aware that it is no more than yet another ‘con’ trick to rob the poor to give to the rich. To quote the Resolution Foundation’s findings: regressive in the lower half of the distribution… Not only is the change huge overall; it is not widely understood or known about being made up of a number of small changes to both the child tax credit and working tax credits.” The study concluded: “Low to middle-income households receive 56 per cent of all tax credits in cash terms and so will be hit disproportionately.” Although 1.1 million people will be taken out of tax by April, the analysis concluded that family incomes have dropped “dramatically” since the Coalition was formed when inflation and earnings are taken into account. A couple with two children and an income of £40,000 a year will see it fall by 8.9 per cent between 2010-11 and 2012-13, and by 14.5 per cent by 2013-14. “The scale of that obviously puts in context the very small impact of the personal-allowance increase,” said the think tank. It defines low to middle earners as having incomes ranging from £12,000 for a couple with no children to £42,500 a year for a couple with two children.” We have to get our Citizen’s Income proposals out there so people can see that there is a genuine, honest |
As Britains poorest are hit by £2.5bn stealth tax, we need our honest alternative, the Citizens Income, more t han ever
Leave a reply
Bridgend's Green Leftie 