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> This gives money to richer voters because the higher your earnings, the more tax saved. a rise of the zero rate equally effects anyone earning above the new
by blibble 8y ago
> This gives money to richer voters because the higher your earnings, the more tax saved.
a rise of the zero rate equally effects anyone earning above the new zero rate threshold (regardless of how much they are above it [1])
a full time minimum wage employee earning ~£14,000/year
gets exactly the same reduction in tax from this specific increase as an engineer on £90,000/year
[1]: once you get above £100,000/year your personal allowance goes down (ultimately to zero)
- coob 8y agoThe engineer on £90k got an additional £730 tax cut with the 40% threshold moving from £46,350 to £50,000.
- rwmj 8y agoThe Resolution Foundation disagrees: https://twitter.com/resfoundation/status/1056969156741029889 https://twitter.com/resfoundation/status/1056969156741029889 However I agree that anyone earning over £100K won't be affected because of the peculiar system where you lose the personal allowance in steps over this threshold.
- blibble 8y agothey don't disagree, your point was: > Personal allowance (zero tax band) raised to £12,500 from April (in the Budget today). This gives money to richer voters because the higher your earnings, the more tax saved. the conclusion of which is factually incorrect, and unsupported by your linked chart (which includes more than just the increase in the zero rated band)
- rwmj 8y agoWhat's the mechanism which is causing a benefit from the 1st and 2nd (the very poorest) groups in that graph, which is caused by adjusting a threshold at £50,000?
- deleted 8y ago[deleted]
- cjrp 8y agoBut raising the zero rate means someone earning >£50k has less of their income taxed under the higher rate (40%).