RE: Austerity is back?23 Nov 2023 20:38
Twa ts will mint it..........
'Fiscal drag'
These cuts may return a little money to taxpayers, said Johanna Noble in The Times, but the Tories are collecting far more through the insidious mechanism known as "fiscal drag". Tax thresholds usually rise in line with inflation, but Sunak froze them in 2021, and they’re set to remain frozen until 2028. This is dragging ever more earners into higher tax bands. In the 1991-92 tax year, only 3.5% of taxpayers paid 40% tax (or above). By 2028, some 14% of taxpayers will. The Office for Budget Responsibility (OBR) estimates that the threshold freezes will raise a combined £44.6bn in extra revenue by 2028-29. Hunt's cuts are small beer in the context of this "stealth tax", said Jeremy Warner in The Daily Telegraph, but at least he is trying to distinguish the Conservatives from Labour. We are "starting to see a proper choice".
https://www.msn.com/en-gb/money/other/tory-tax-cuts-a-fiscal-drag-race/ar-AA1kpJZp?ocid=msedgntp&cvid=efafb142581d4f2394a20b4f731a1a05&ei=20