IFS: Richest to be hit hardest by tax changes in April

Green Politics

The respected economic think tank, the Institute of Fiscal Studies, have released a sneak preview of their annual 'Green Budget', to be launched on Wednesday. What we know so far is that the IFS are saying that tax changes to be brought in in April will cost the richest tenth of households typically 3 per cent of their income, compared to 1 per cent for the general population.

The respected economic think tank, the Institute for Fiscal Studies, has released a sneak preview of their annual ‘Green Budget’, to be launched on Wednesday. What we know so far is that the IFS are saying that tax changes to be brought in in April will cost the richest tenth of households typically 3 per cent of their income, compared to 1 per cent for the general population.

Other findings include:

• 750,000 individuals are due to enter the higher rate taxpayers as a result of a reduction in the level of income at which the higher rate starts to take effect;

• Those with incomes of over £100,000 will be affected by the loss of personal tax allowances;

• Those on means-tested benefits will be worse off due to the decision to link payments to the Consumer Prices index (presently at 3.1%) instead of the Retail Price Index or the Rossi Index (presently at 4.6% and 4.8% respectively)

The IFS has described the pattern of winners and losers as complex. Left Foot Forward will be reporting on the analysis as it is unveiled.

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17 Responses to “IFS: Richest to be hit hardest by tax changes in April”

  1. terry o'brien

    RT @leftfootfwd: IFS: Richest to be hit hardest by tax changes in April: http://bit.ly/emln0a writes Daniel Elton

  2. 750000 ‘to pay higher tax rate’ – BBC News « Google News « Big Tony's Big Network

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  3. 750000 ‘to pay higher tax rate’ – BBC News « Google News « Big Tony's Big Network

    […] hit thousands claims IFSShareCastIFS: 1.6m to pay higher rate of tax for first timeTelegraph.co.ukIFS: Richest to be hit hardest by tax changes in AprilLeft Foot ForwardSpectator.co.uk -Public Finance -The Guardianall 193 news […]

  4. Anon E Mouse

    About time too.

    Why the Labour government never put the poor first I will never know.

    This is a good link from Luke Akehurst: http://www.progressives.org.uk/columns/column.asp?c=583

  5. Higher tax rate to hit thousands claims IFS – ShareCast | MyBlogWorld

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