UK households face tax rise of £3,500 a year by next election, finds IFS
UK households face tax rise of £3,500 a year by next election, finds IFS
Thinktank says Tories have overseen the biggest increase in taxes during a parliament since records began in 1951
As someone who hates the Tories, this is total bullshit reporting, actually. The £3,500 a year figure comes from “an additional £100bn a year for the exchequer – the equivalent to about £3,500 more per household”, but where is that additional £100bn coming from?
A “rise in corporation tax from 19% to 25%, the energy profits levy and the freezing of various income tax and national insurance thresholds.”
Ah yes, “various income tax rates”, that’s definitely not a reference to the top rate of income tax… which is £125k. Fuck off. I don’t give a shit about people earning that much having to pay more tax.
Fuck the Tories, they’re looting the whole country. But this is total nonsense.
Stating you hate the Tories then come out with an opinion to try and promote them. Your last post said
Oh, and for all you “vote the Tories out, get a labour government” fantasists:
It is like you are saying I hate the Tories as a deflection from the fact you want to denigrate anyone speaking against them.
As for your comments here:
The windfall profits levy is expected to be £5b. I could argue this is government figure, so optimism is key here.
Corporation tax from 2019 year end is £63.2b
Corporation tax from 2023 year end £84.7b
Which is a rise of
£21.6b£26.5, this leaves £73.5b in extra tax receipts since 2019. That is still a massive amount. If we assume that the £3500 per household is correct for the total amount, then with the new amount it is still £2572.5 per household, that is without corporation tax and windfall levies. Which is still £172.5 higher than the Tories said we would get if we were stupid enough to vote for Corbyn.And for icing on the cake, Corporation taxes have actually decreased under the Tories from 28% in 2011, 24% in 2012, 23% in 2013, 21% in 2015, 20% in 2016 and 19% in 2018. The last 5 years have been the lowest rate for corporation taxes in at least the last 60 years. More proof that the burden of finances the country is falling on the poorer people in the UK.
EDIT: Corrected the error in the sums.
Take one look at anything I have ever written on Lemmy and you’ll see that I am by no means a defender of the Tories. Speak against them all you want, I’ll not defend them, but I also won’t abide the media sharing pro-industry, pro-capitalist think-tank bullshit, which is exactly what this is - a think tank that wants the Tories to tax the wealthy even less than they currently are.
And for icing on the cake, Corporation taxes have actually decreased under the Tories from 28% in 2011
Yes, it was dropping until the relatively recent announcement that they’re increasing it to 25% for companies that earn over 250k. That’s one of the reasons why this think tank is complaining about increases of corporation tax costing households money.
the new amount it is still £2744 per household
Except it’s not. It’s £0 per household, because corporations and fossil fuel companies aren’t households. If I instituted a wealth tax on billionaires and raised £282 billion with it, that’s not costing households £10,000 each is it?
The Tories deserve tonnes of criticism about hundreds and hundreds of things they’ve done. But increasing corporation tax and the concept of a fossil fuel industry levy (as much of a total scam that the implementation is) aren’t among those issues.
Ah yes, “various income tax rates”, that’s definitely not a reference to the top rate of income tax… which is £125k. Fuck off. I don’t give a shit about people earning that much having to pay more tax.
Thresholds, not rates. And, as you'd expect, freezing them hits the poorest the hardest.
The effect of freezing tax thresholds:
The combined impact of headline tax changes, policy roll-outs and frozen taxes and benefits by 2025–26 is broadly regressive, with the poorest seeing income falls of 2.8% of income and the richest falls of only 1.1%. Headline cuts to income tax and National Insurance will benefit higher-income households who are more likely to get more of their income from employment, while the poorest tenth of households will gain only £13 per year from these measures. Because some tax thresholds and – especially – benefits values are indefinitely frozen, the impact of freezes only grows over time. As a result, by 2030–31 the total changes to the tax and benefit system are more clearly regressive, with the highest-income tenth seeing a 1.3% fall in income and the lowest-income tenth a 4.7% fall.
I absolutely 100% agree with you that the Tories are stealing from the poor and giving to the rich. But the article isn’t about personal allowance. If you click on the link I referenced in the original post, it takes you to an article about higher rate tax-payers. I don’t think any of us should give a shit about higher rate tax payers, and I’m not going to apologise for holding that opinion.
I’m responding to the article as it stands. Obviously the Tories aren’t good for the country economically, I think that’s self-evident, but the article is extremely misleading.
Phil Moorhouse does a good break down on this one. He points out that the Tories were elected by using the fear factor over Corbyn. Part of that was stating that Corbyn would raise taxes by £2400. I wouldn't mind that extra £1100 per year in my back pocket now.
This is the best summary I could come up with:
In a damaging report for Rishi Sunak as the Tory party faces growing internal divisions over the issue, the thinktank said tax revenue was on track to amount to about 37% of national income in 2024, up from about 33% four years ago.
In analysis that is likely to stoke fresh Tory infighting, the IFS said no parliament had presided over a bigger increase in taxes than the current one – led by three Conservative prime ministers – on records dating back to 1951.
Under Keir Starmer, Labour has seized on rising tax levels as evidence of the Tories’ failure to grow the economy, arguing the government is in a bind of its own making, as sluggish economic growth brings in less income for the exchequer to fund public services.
In separate research published on Friday, a report from the Resolution Foundation thinktank and the innovation charity Nesta’s UK 2040 Options programme warned stark wealth inequalities were holding Britain back.
Ben Zaranko, a senior research economist at IFS, said that while high by historical standards, the UK’s tax take as a share of national income was still “fairly middling” compared with other developed countries.
A spokesperson for the Treasury said that “despite needing to take the difficult decisions to restore public finances” after the Covid pandemic and Russia’s invasion of Ukraine, the UK’s ratio of tax to gross domestic product would still remain lower than any major European economy.
The original article contains 810 words, the summary contains 239 words. Saved 70%. I'm a bot and I'm open source!
Oh, and for all you “vote the Tories out, get a labour government” fantasists: “the shadow chancellor, Rachel Reeves, has ruled out introducing a wealth tax or putting up the top rate of income tax”
Labour aren’t worth your vote. We need to make our own political change now.
You don't always vote for what you want under FPTP. It is fairly evident through polls that most want PR voting. Until that happens you vote for what is tactically best for you.
Labour aren’t worth your vote. We need to make our own political change now.
What are my options when the most important thing for me at the next election is remove this corrupt group from office?
Your best bet it's voting against the worst party. That's FPTP. Until that's gone there's little point in voting for the party you actually want.
Ah hey this sounds fine! I mean it’s only the plebs who will suffer. They’re only like, 95% of the country and (checks notes) the spine and meat of the entire economy. What’s the problem?