Debt -
IFS: Government will raise taxes - 14/03/2008
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Income tax will be put up by the government after the next election, the Institute for Fiscal Studies (IFS) has suggested.
According to the econmists, around 3p will be added to the basic rate, in order to claw back some of the national debt, the Daily Mail reports.
The IFS study follows chancellor of the exchequer Alistair Darling's announcement earlier this week that the current 22p rate will be reduced to 20p next month.
It was also suggested that the poorest 50 per cent of the population would be given a 0.6 per cent boost in income thanks to the budget.
By contrast, the richer half will suffer a 0.2 per cent reduction, when all of the Budget proposals are factored in.
Commenting, IFS director Robert Chote said: "All in all, there is a danger that we are seeing the history of Labour's second term repeating itself.
"Gordon Brown insisted repeatedly after his forecasts began to go awry in 2002 that there was no problem with the public finances - but as soon as the 2005 election was won he announced a spending squeeze and introduced a series of tax-raising budgets."
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