UK NEWS

STEALTH TAX FIDDLE PUTS £550 ON BILLS

BROWN: Refused to raise tax thresholds in line with house prices and earnings

Tuesday January 8,2008

By Macer Hall Political Editor

Comment Speech Bubble Have your say(6)

HOUSEHOLDS are being ripped off by an average £550 a year by sneaky tax-rate tricks under Labour, it was revealed yesterday.

The cash is being squeezed out of families through the manipulation of tax thresholds on levies such as income tax and national insurance.

Researchers estimate the Treasury has netted an extra £80billion since 1997 thanks to the covert practice.

And it means the average family bill for stealth taxes now stands at more than £2,000 a year.

The £550 annual rip-off was uncovered by the TaxPayers’ Alliance, which described the extent of Labour’s trickery as “breathtaking”. This year it amounts to £14billion when all taxes are included.

The analysis examined how Mr Brown – as Chancellor and then Prime Minister – repeatedly refused to raise tax thresholds in line with house prices and earnings, a practice known as fiscal drag.

For income tax, the tax-free personal allowance has increased from £3,756 to £5,225 since 1997. But if the rise had been directly in line with the rise in average earnings over the same period, the figure would be £5,712.

Raising the threshold to that figure could save a basic or higher-rate taxpayer around £100 a year. And it would also free around half a million people from having to pay income tax at all.

The TaxPayers’ Alliance report said: “Over 1.5 million more people are paying income tax at 40 per cent than a decade ago.

“These are not rich businessmen, but ordinary taxpayers including teachers and police officers.”

And the group said Labour’s fiddling with stamp duty rates was “even worse”.

The threshold for the one per cent rate of stamp duty has increased from £60,000 to £125,000 since 1997 but had the rate kept pace with rampant house-price inflation it would now be £183,000.

Tory frontbencher Philip Hammond, the Shadow Chief Secretary to the Treasury, said: “Gordon Brown has used fiscal drag as yet another stealth tax to hit hard-working families.

“Rising fuel and mortgage costs and declining take-home pay mean that more and more families are struggling to make ends meet.”

But a Treasury spokeswoman last night dismissed the latest analysis.

She said: “As a result of tax and benefit measures introduced since 1997, the average household will be £1,000 a year better off in real terms this year, and families with children will be on average £1,550 a year better off in real terms.

“What’s more, according to the Organisation for Economic Co-operation and Development, the net tax rate paid by the average working family has halved since 1997.”

STEALTH TAX FIDDLE PUTS £550 ON BILLS

08.01.08, 2:17pm

Doesnt this signify that despite the current demeanour and orchestrated smiles, GORDON BROWN was the most DEVIOUS CHANCELLOR in British History and his Premiership will no doubt continue in exactly the same way.

• Posted by: AnthonyGibson • Report Comment

STEALTH TAX FIDDLE PUTS £550 ON BILLS

08.01.08, 12:07pm

I trust that everyone will remember this well come the next General Election.

Gordon Browns Policies over the past 10 years have been slowly bleeding the Taxpayer Dry.

At the same time they freely hand out Taxpayers Money by way of Benefits to any Immigrant or Asylum seeker that manages to creep into the Country, illegally or otherwise .

• Posted by: EmperorMing • Report Comment

TYPICAL CON MERCHANTS

08.01.08, 11:23am

and have been for years. They give you a few pence off here and there, and at the same time, rip us off for loads. Council tax's going up, watch out for the congestion charges they're trying to push in through the back door, and not to mention fuel costs gone through the roof. And NO! I did not vote for this thieving bunch.

• Posted by: snaredrum • Report Comment

GORDON BROWN DISOLVES PARLIAMENT AND RESIGNS AS LABOUR LEADER

08.01.08, 8:58am

Wishful thinking maybe but isn't that the headline we all want to see at the moment?

We have had it up to the eyeballs with high taxatiion, spin, corruption, inefficiency, treachery and just sheer boredom. Time for a change Gordon, please make my headline a reality.

Go to the country.

• Posted by: Peter_Pan • Report Comment