||[Mar. 21st, 2007|05:46 pm]
Listen in, listen Ian!
So as I understand, I get a tax break at the expense of those earning less than about 8 thousand per. Call me an old commie but that seems a little unfair.|
2007-03-21 06:22 pm (UTC)
I suspect that those under 8k benefit from the Working Tax Credit hike, but I haven't seen exact figures.
Okay - this came from the deeply unscientific method of skim reading the front page of the Evening Standard, but as I understand it, those on the old 10k tax band will have any shortfall made up by the hike in working tax credit. Moreover, ruudboy
(and me) won't benefit at all because, says the Standard, we're part of the Bridget Jones generation, apparently (i.e. we're single) and the sole beneficiaries of the cut are families. It's a clever bit of targeted trickery - no one actually loses out, but only an electorally significant group benefit.
Sorry - for "10k" read "10 per cent."
I'll be £50 better off per year according to the BBC tax calculator. Probably because I don't drink or smoke or drive so those increases don't affect me. Although I was a bit disappointed, because according to my bit of paper calculator, I was going to be about 300 quid better off.
Is this just working families credit, or can single people get it too?
Although I emphatically don't support the idea of a flat tax, I think income tax needs to be massively simplified. I'd get rid of all these tax credits, and start with raising the personal allowances. Oh, I'd try and do something about merging National Insurance into income tax too - the upper tax band is a huge con really, as it makes no difference when the rate it kicks in at is nearly the same as the upper limit on NI contributions. I've not worked out what I'd do about employers' NI contributions under my tax masterplan though.
2007-03-22 10:57 am (UTC)
That sounds quite Gordon. Probably true, then.
yeah apparently it's yr babyless singletons on between 15 and 18k who are losing out, seems a bit harsh...
it seems to me that this is going to hit grads taking their first job (and who will just have to start paying their loans back too)...
Single people over 25 are eligible for working tax credit, so grads would only be hit for two years maximum (and they'll only be paying loans back if they're earning more than 15k, if memory serves.) I don't really think anyone's going to lose a great deal of money because of the changes - single people between 18 and 25 earning less than 23,000 might lose about £50 a year, tops.
Oh. You've answered my question before I even asked it I see. Well done!
Then they should get out there and get breeding, shouldn't they?