« The hidden recessions | Main | Don't bet on a slowdown »

December 06, 2005



Fiscal drag?


That's a lot of the story, Meaders - but not all. Isn't it a bit odd that taxes are forecast to take 42.8% of growth, when the top marginal tax rate is 40%?
Part of the story is that pay rises for lower earners will be clawed back by falling tax credits - very egalitarian.


Including national insurance contributions the highest marginal rate of income tax is 50% but there will be consumption tax on top of that.

Barry Ojar

Interesting information

Barry Ojar

Interesting information

The comments to this entry are closed.

blogs I like

Blog powered by Typepad