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How Gordon Brown makes the poor pay more tax

This article is over 13 years, 9 months old
and widens the gap between the rich and the rest of us
Issue 2096
How Gordon Brown makes the poor pay more tax

LOSER: Call centre worker

Abolition of bottom rate tax band will hit a 24 year old who earns less than £18,000 a year, but must now pay £232 more tax a year

WINNER: Big business

Corporation tax has been reduced again – to just 28 percent – ensuring that Barclays’ £7 billion profits stay with the rich

LOSER: Pensioner

Like more than 1.9 million other people, a pensioner whose income is £6,500 a year pays more than 40p in tax for every extra £1 they earn

The government likes to talk big about how it is lifting ‘millions out of poverty’ but the abolition of the 10p starting rate of tax speaks volumes about its real agenda.

Under New Labour the gap between the rich and poor has widened to a gulf. And Gordon Brown has continued the trend started by Tony Blair.

Taxation policy is one of the main ways in which a government can start to reverse inequality.

By setting low rates of tax for the less well-off and higher rates for the wealthy, the government could improve living standards for millions of people.

Yet Brown has committed New Labour to precisely the opposite. Some of the lowest paid workers in Britain are being punished by tax changes at the same time that corporation tax is being slashed.

Britain’s bosses, who are already lining their pockets with Brown’s handouts, are laughing all the way to the bank.

See also » London’s working poor

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