Daily Archives: March 21, 2012

Chris Cook

One curiosity which is often overlooked in social policy discussion is who actually pays which taxes. Today, the Chancellor said that his reforming Budget would create:

A tax system where millions of the lowest paid are lifted out of tax altogether

He is referring to the policy of raising the income tax threshold towards a target of £10,000. But it is a mistake to say people below that line will be “out of tax”. Here is a graph, based on table 14 of this ONS document, showing how the tax burden varies.

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