Distributional impact of 10K personal allowance

As you can see from the graph, the idea that the £10 thousand pound personal allowance is about anything resembling fairness is a nonsense. As the graph below shows, those who benefit most from the policy are those on the upper end of the income scale. The poorest sections of the population barely gain at all – barely £6 a year!

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8 Responses to “Distributional impact of 10K personal allowance”

  1. LB

    And the distributional impact of 50% taxation?

    Of hitting people for extra NI?

    And of withdrawal of child benefit?

    ie. If you want the rich and middle class to pay for everything, and at the same time deny the rich and middle classes any services, expect them to avoid and evade tax.

    Given the 7,000 bn debt mountain, (ONS figures), you’re going to need them.

    I suggest not pissing them off.

  2. henrytinsley

    You’ll soon be telling us that old story that they’ll all go off to Switzerland or wherever.

  3. henrytinsley

    You’ll soon be telling us that old story that they’ll all go off to Switzerland or wherever.

  4. henrytinsley

    You’ll soon be telling us that old story that they’ll all go off to Switzerland or wherever.

  5. henrytinsley

    You’ll soon be telling us that old story that they’ll all go off to Switzerland or wherever.

  6. henrytinsley

    You’ll soon be telling us that old story that they’ll all go off to Switzerland or wherever.

  7. Newsbot9

    Of course you do. Gotta hype up how you rip us off, benefiting from billions in corporate welfare and paying low tax, if any, on unearned income.

    Keep calling for higher tax to pay your 6th house bills!

    The reality is that even if the rich do move, they leave their businesses behind, for no net loss to the country.

  8. robertcp

    I am not sure if I understand the graph. Someone on 10,000 pounds will not pay any income tax if the allowance is increased by that amount. People on higher incomes will also benefit from not paying tax on the first 10,000 of their income but won’t that be a lower proportion of their income? Is the graph taking into account other policies such as cuts to welfare and the rise in VAT?

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