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.

No related posts.

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

  1. Higher tax rate to hit thousands claims IFS – ShareCast « Google News « Big Tony's Big Network

    […] NewsIFS: 1.6m to pay higher rate of tax for first timeTelegraph.co.ukFinance Markets -Left Foot Forward -Spectator.co.ukall 200 news articles » Bookmark on Delicious Digg this post […]

  2. Mike Thomas

    Looks like the coalition have re-distributed incomes in a way Labour couldn’t in 13 years.

  3. anon e mouse

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

    Tax rebalancing finally! Well reported LFF…

  4. Liz McShane

    Anon – The Minimum Wage etc? They were policies that Labour brought in to help the low waged/poorer members of society.

  5. Anon E Mouse

    Liz – Labour chopped 10p tax which directly hit the poor whilst deregulating the banks and allowing the rich to go nuts.

    Hat tip to Jack Straw who on 29 April 2008 admitted the 10p Tax removal was wrong.

    Jack Straw said: ‘Sometimes, even with the best brains available to government, there are inadvertent consequences of changes. We put our hands up … we should have known more about the impact.’ Read more: http://www.thisismoney.co.uk/news/article.html?in_article_id=440927&in_page_id=2#ixzz1CcG35wvt

    And what was Gordon Brown’s response to this remark? He said he was “Just getting on with the job”. Right.

    The National Minimum Wage, coupled with the Labour open borders immigration policy (Andrew Neather — a former adviser to Straw, Blair and David Blunkett — revealed that Labour ministers had a hidden agenda in allowing immigrants to flood into the country. “There was a reluctance … in government,” he wrote, “to discuss what increased immigration would mean, above all for Labour’s core white working-class vote) however noble, resulted in Polish plumbers cutting the rates of skilled men in this country and they had the cheek to say “British Jobs for British Workers”.

    Both those examples mentioned leave aside the Labour NI hikes, Green Fuel Escalators, Travel Taxes, Congestion Charge (Boris Johnson should be ashamed of himself for claiming it’s to do with the environment) etc etc.

    Anyway as a Labour supporter I assume that (leaving the leader’s Inheritance Tax fiddle aside – thanks for the link btw) you have Socialist leanings in which case surely you support this move Liz?

    Or would you rather the rich were better off at the expense of the poor?

Comments are closed.