10% Tax rate scrapped.

[Happyolddog]

The chancellor has ruled out a U-turn on axing the 10p tax rate, saying it would be "totally irresponsible" to "unravel...or rewrite" the Budget now.
But Alistair Darling told the BBC he "would return" in future Budgets to help those hit by the move.
Critics should look at it alongside tax credit and pension changes which had helped lower earners, he said.
But leading Labour rebel Frank Field said promises of "something undefined" in the future did not go far enough.
And Conservative leader David Cameron said Mr Darling should "get off his backside" and get into the Treasury to rewrite his Budget. Mr Cameron told BBC Radio 4's The World This Weekend that the Conservatives would be "trying to get the government to stop and think again" on a "pre-meditated tax grab" on 5.3 million people.

[Happyolddog]

Re: 10% Tax rate scrapped.

This means to my family that we will be £600 a year worst off. My wife who is a low paid public employee will foot the tax bill of the higher paid in society.WTF? So nurses, council staff and shop workers are paying for a 2% cut for the high end workers. This is a national disgrace which I hope brings this government down. They are f****ng this country up completely. No wonder Blaire stepped down when he did, he has lined Brown up to take all the s*** that he left as a legacy.

[Guest]

Re: 10% Tax rate scrapped.

There is a tax calculation called the Effective Marginal Tax Rate (EMTR)

Under these new rules 13% of UK adults face an EMTR in excess of 70%. That is, for every additional £1 of income they get, the government will take at least 70p.

For 7% of adults it's even worse: they face an EMTR of 90% plus, meaning they lose at least 90p of every extra £1 they earn.

Who are these people do you think? It's not the rich, or even the comfortably off middle-classes.

The only people who face 80, 90, 100% tax rates are the poor.

That's because when they earn more, they not only have to pay tax, but they also face the progressive withdrawal of welfare benefits, such as housing benefit. Their EMTR is consequently much higher.

The reality of Gordon Brown's war on poverty is that by hugely expanding the scope and magnitude of means tested welfare benefits, he has made it much harder for the poor to earn their own way out of poverty. Even if they might want to. Despite all his talk about hand-ups replacing hand-outs, he has seriously reinforced long-term welfare dependency.

5.3 million people will be worse off and Labour don't care.

[Amethyst]

Re: 10% Tax rate scrapped.

Completely utterly agree with you.