Monday, March 21, 2022
Tory stealth tax hitting the poorest workers
The Liberal Democrats have accused Chancellor, Rishi Sunak of imposing a ‘stealth tax’ that will result in nearly 125,000 more of the poorest workers paying National Insurance:
The Mirror reports that the minimum salary at which workers pay the soon-to-be-hiked tax is rising from £9,568 to £9,880 a year next month, that is an increase of 3.1%, despite inflation running at 5.5%, and there are fears price rises could soon top 8%:
House of Commons Library research for the Lib Dems found between 95,000 and 125,000 fewer people would have to pay National Insurance if the threshold rose by 7.25% instead.
Meanwhile, the income Tax threshold is being frozen for four years in a stealth tax that is expected to raise more than £12bn, while student loan thresholds are also being frozen, forcing graduates to fork out a bigger proportion of their income to repayments as wages and prices rise:
It is a similar problem to benefits and pensions, which are also only rising by 3.1%. The figure is what inflation was last autumn - but it's since rocketed out of control.
Liberal Democrat Treasury Spokesperson Christine Jardine said: “Families are facing the worst squeeze in living standards in 50 years, but the Conservatives are clobbering people with yet more stealth taxes.
“This unfair move will drag thousands more people into paying tax, while millions more will see their tax bills rise yet again next year. Meanwhile small businesses struggling to stay afloat face a hidden tax on their employees' salaries.
“It is rubbing salt in the wound of the government’s broken promise not to raise National Insurance. Rishi Sunak must spike the hike, and offer families and businesses a lifeline by slashing VAT instead.”
It is little wonder so many people are struggling to make ends meet.
The Mirror reports that the minimum salary at which workers pay the soon-to-be-hiked tax is rising from £9,568 to £9,880 a year next month, that is an increase of 3.1%, despite inflation running at 5.5%, and there are fears price rises could soon top 8%:
House of Commons Library research for the Lib Dems found between 95,000 and 125,000 fewer people would have to pay National Insurance if the threshold rose by 7.25% instead.
Meanwhile, the income Tax threshold is being frozen for four years in a stealth tax that is expected to raise more than £12bn, while student loan thresholds are also being frozen, forcing graduates to fork out a bigger proportion of their income to repayments as wages and prices rise:
It is a similar problem to benefits and pensions, which are also only rising by 3.1%. The figure is what inflation was last autumn - but it's since rocketed out of control.
Liberal Democrat Treasury Spokesperson Christine Jardine said: “Families are facing the worst squeeze in living standards in 50 years, but the Conservatives are clobbering people with yet more stealth taxes.
“This unfair move will drag thousands more people into paying tax, while millions more will see their tax bills rise yet again next year. Meanwhile small businesses struggling to stay afloat face a hidden tax on their employees' salaries.
“It is rubbing salt in the wound of the government’s broken promise not to raise National Insurance. Rishi Sunak must spike the hike, and offer families and businesses a lifeline by slashing VAT instead.”
It is little wonder so many people are struggling to make ends meet.
