| Low earners hit by income tax changes |
| Monday, 07 April 2008 | |
 Changes introduced by Gordon Brown when he was chancellor last year but coming into effect this month will mean that the starting rate at which people pay tax has effectively doubled to 20p in the pound. The Treasury has admitted that one in five households will be worse off, but what is remarkable is that households with the lowest earners (particularly those earning under £10000) will lose out most - a situation that Southport's MP says "almost defies belief".
Commented John. "I never thought I'd see the day when a Labour Government brings in a tax cut for the rich subsidised by the poor, and yet that's exactly what this is - a tax cut paid for by pensioners and those struggling to make ends meet. Southport is not a high wage economy. There are plenty of people in this bracket." The proposals have split the Labour party in recent weeks as a rebellion against the changes by several Labour MPs has heaped pressure on the Government - pressure Southport's MP wants to see increased: "The Government are reeling on this one, and if people make a big enough noise then Labour will be forced to listen. My message to those affected is this: don't let them get away with it. Everyone should pay extra attention to their tax bill this month. "I know from speaking to several MPs at Westminster that Labour are very, very worried about this - as well they should be. A Labour Government should never be allowed to get away with a tax that leaves the pooest paying more so that others can be better off, but they will unless the people involved stand up for their rights." Use this free tax calculator (links to externals site) to see how you'll be affected. If you are worse off as a result of these changes John Pugh would be interested to hear from you. |