Wednesday, May 21, 2008

Lbaour has cut taxes for the poor end of story

Using the income tax calculator on http://www.listentotaxman.com/. I have calculated labour has cut taxes for poor since it came to power. Despite the fake media onslaught from the Tories. Add to this the mini wage, tax credits, and the new deal labour has helped the poor.
Here is the calculations for someone on £7200
2001 - 02 They saw an improvement in their income tax PAYE collection by £133.40
2002 - 03 They saw an improvement in their income tax PAYE collection by £32.80
2003 - 04 They saw an increase in their income tax PAYE collection by £20.92
2004 - 05 They saw an improvement in their income tax PAYE collection by £47,24
2005 - 06 They saw an improvement in their income tax PAYE collection by £58.26
2006 - 07 They saw an improvement in their income tax PAYE collection by £55.16
2007 - 08 They saw an improvement in their income tax PAYE collection by £37.96
Then in
2008 - 09 They saw an increase in their income tax PAYE collection by £126.90 but most of this was given back with increase in the the tax threshold giving back every tax payer 120 pounds a year. So the only lost £6.90 this year.

All in all in the last few years then the calculation is;
133.4 + 32.8 - 20.92 + 47.42 + 58.26 + 55.16 + 37.96 - 6.90

Meaning since 2001 someone on £7200 would have seen a decrease in their PAYE income tax bill of around 337 quid a year. Plus the mini wage and tax credits. So this stuff about labour increasing taxes on the poor since 1997 is rubbish.

Mind you labour should do far more and should tax the rich more. After all the 337 pound increase is not much when you take into account inflation. I still feel the poor should be given more massive tax cuts. For instance people earning £100,000 a year saw their taxes rise by 892 quid a year in 2003 - 04, but since then have had massive tax cuts if upto £200 pound a year. Why? What was the point in that? It is not as if they will notice those tax cuts. What is the point giving such people a tqax cut of 200 quid. They spend that in one night. It will hardly buy their vote, or encourage them to stay in this nation. It does make you wonder if there is is that much political thought on their taxes. I mean did someone in the treasury seriously think let's give rich people a tax cut of £200 pound a year. What was the coherent thought process behind that. Why? What is the point? People on over 100,000 a year should have all the tax cuts since given to them since 2004 taken off them.