Thursday, March 22, 2007

From Iain Dale's Diary

Brown is such a lair. Iain Dale posted this. Even Brown had to admit on BBC Breakfast show that it was a neutral budget. It might be this year, but it takes more in next year and even more the year after. Shyster.

Brown has made much of the increase of £150 in child tax credit and £1200in the maximum income before the working tax credit starts toget withdrawn. But have a look on Annex A Page 8 of 32 bottom of page paragraph A14 (page 212 of whole document) "A.14 From 6th April 2008, the rate at which tax credits are withdrawn will increase from 37 per cent to 39 per cent."In otherwords, if you are on tax credits the cut in income tax from 22 to 20% iscancelled by the increase in tax credit withdrawal from 37 to 39%, plus you getthe increase from 10-20% with the starting rate abolition.The increase in child tax credit by £150 if you have children helps and the rasingof start of withdrawal from £5220 to £6420 also offsets the rises to the extentthat the very low paid are a little better off, but this is no giveawayfor the low paid. They are still taxed at 70% for every extra pound they earn(20% income tax, 11% national insurance, 39% tax credit withdrawal).

No comments: