Monday, April 12, 2010
Labour's unfair taxes
The Liberal Democrats have published research that shows the amount of tax paid by the poorest has gone up under Labour.
According to their analysis of Treasury figures, the poorest 20% of people are losing more of their income in tax than they did in 1997, while the richest 20% are paying less:
The party's research shows in 1997, the poorest 20% of households had a gross income of £7,300 each and paid £2,760 in tax, meaning they paid 37.8% of their income in tax.
However, the richest 20% of households then had a gross income of £48,720 each and paid £17,200 in tax, so they paid 35.3% of their income in tax.
In contrast, the Lib Dems show that in 2008, the latest year for which data is available, the poorest 20% of households had a gross income of £11,105 each and paid £4,302 in tax, meaning they paid 38.7% of their income in tax, while the richest 20% of households had a gross income of £74,247 each and paid £25,926 in tax, meaning they paid 34.9% of their income in tax.
The Lib Dems say: "In today's prices this means the poorest 20% now pay £107 more tax under Labour than they did when they came to power, while the richest 20% pay £319 less."
These figures make the case for our policy of lifting the personal tax allowance to £10,000. It is the best way to try to correct this injustice and only the Liberal Democrats have a costed policy to deliver it.
According to their analysis of Treasury figures, the poorest 20% of people are losing more of their income in tax than they did in 1997, while the richest 20% are paying less:
The party's research shows in 1997, the poorest 20% of households had a gross income of £7,300 each and paid £2,760 in tax, meaning they paid 37.8% of their income in tax.
However, the richest 20% of households then had a gross income of £48,720 each and paid £17,200 in tax, so they paid 35.3% of their income in tax.
In contrast, the Lib Dems show that in 2008, the latest year for which data is available, the poorest 20% of households had a gross income of £11,105 each and paid £4,302 in tax, meaning they paid 38.7% of their income in tax, while the richest 20% of households had a gross income of £74,247 each and paid £25,926 in tax, meaning they paid 34.9% of their income in tax.
The Lib Dems say: "In today's prices this means the poorest 20% now pay £107 more tax under Labour than they did when they came to power, while the richest 20% pay £319 less."
These figures make the case for our policy of lifting the personal tax allowance to £10,000. It is the best way to try to correct this injustice and only the Liberal Democrats have a costed policy to deliver it.
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Sunder Katwala on Liberal Conspiracy has a different view and one which states that Labour has made taxes fairer - http://liberalconspiracy.org/2010/04/12/sorry-libdems-labour-has-made-taxes-fairer/
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