The Institute for Fiscal Studies (IFS) has warned the three main political parties that their plans for more tax cuts will do little to help the low paid, the Financial Times reported. The IFS said that the proposed increase in the personal allowance threshold to £12,500, as advocated by the Liberal Democrats and the Conservatives, would not help the one in six workers who already pay no income tax. The IFS was also dismissive of Labour’s plan to restore a 10p tax band and suggested increasing the point at which employees’ NIC becomes due. Finally, the IFS warned about the UK’s ‘reliance on a small group of very rich taxpayers’ for its tax revenues. The income tax paid by about 300,000 wealthy people accounts for 7.5% of the UK’s tax revenue.
The Institute for Fiscal Studies (IFS) has warned the three main political parties that their plans for more tax cuts will do little to help the low paid, the Financial Times reported. The IFS said that the proposed increase in the personal allowance threshold to £12,500, as advocated by the Liberal Democrats and the Conservatives, would not help the one in six workers who already pay no income tax. The IFS was also dismissive of Labour’s plan to restore a 10p tax band and suggested increasing the point at which employees’ NIC becomes due. Finally, the IFS warned about the UK’s ‘reliance on a small group of very rich taxpayers’ for its tax revenues. The income tax paid by about 300,000 wealthy people accounts for 7.5% of the UK’s tax revenue.
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