Poverty

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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