« Labour's credibility problem | Main | The incumbency advantage »

March 15, 2016

Comments

Ben

No mention of ramping housing to bribe the boomers. Must be fake.

Keith

I wonder if any of those gullible Political reporters will use this as a guide to check the latest version of the Budget dance?

What would this look like if your the opposition Man? May be do one for him!

eev2

Can you please explain how, by raising the personal allowance, benefits mainly the higher earners.

Ash

@eev2, I think chris's point is that if you are already on a low income earning below the personal allowance threshold, then any raise in the personal allowance doesn't give that low income worker any more money (they can't get taxed on what they don't earn). Whereas if you have a higher income and are earning above the personal allowance threshold then any increase in the personal allowance will in effect reduce the effective tax rate of those higher income earners. So raising the personal allowance seems like it's helping out the poor but it's just making it a slightly easier for the relatively richer. I think anyway...

Roy Lonergan

@Ash - As you say the personal allowance change saves tax at your marginal rate so it is more valuable to 40% taxpayers than 20% taxpayers, and is of no benefit at all if you are already below the threshold. It also has no value at the higher end of the wage spectrum where the personal allowance has been withdrawn. The net effect of all that is that an increased personal allowance mainly benefits the 4th to 9th deciles - www.ifs.org.uk/publications/6045

The comments to this entry are closed.

blogs I like

Blog powered by Typepad