But, wait a minute, what short memories we all have. The
PM’s forward promise to move the 40% threshold up to £50,000 means that the
rate will kick in at the boundary level last seen in 2009/10 under, yes, him, Gordon Brown.
Let's look at the details.
In 2009 the 40% rate kicked in after £37,400 of taxable income. Under a
Conservative government in 2020 after a decade in office it would kick in at
£37,500 (£50,000 – £12,500). A move in the right direction of £100…
Confused?
Well the threshold drag has been a
hard-to-headline stealthy massive tax hike by this government. With no other
deductions and no change in the N.I. rate (which surely will be
abolished in a final Lawsonian type reform towards which George Osborne is
ideologically inclined) the net take home figure would only be improved by
some £2,100 for a £50,000 earner in 2020 compared to 2010 – a 4.2% relief.
Whereas
someone on minimum wages making £12,500 in 2020 compared to 2010 will see
nearly a 100% improvement in their net take home pay…
And how are you going to vote in May 2015 if you are not in the higher wage bracket? Bit of a no brainer really.
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