• The post you are reporting:
   
  From the FT:
  
  But at least millions no longer pay tax?
  Having no income tax liability does not equate to no tax liability. Those no longer paying income tax still pay national insurance, value added tax, excise duties and a host of others.
  Mr Osborne is simply continuing a long and ignoble tradition of cutting income tax rates while increasing other taxes. It applied as much in Labour years as now.
  Worse, the thresholds for income tax and national insurance had been aligned before the coalition became misty-eyed about the level of the personal allowance, a useful piece of tax simplification. Now, people will pay national insurance and not income tax.
  They will not feel they have been spared tax altogether.
  
  Who are the winners and losers?
  If you are elderly with a modest pension, freezing the income tax age allowance will hurt. Smokers, drivers of company cars and buyers of expensive homes were other losers.
  Gainers include rich people who can pay themselves in 2013-14 and save lots of money, while looking down on the vast majority of taxpayers gaining just £14 a month from a higher personal allowance.

Report Post

Your Name

Reason