UK Deputy Prime Minister Nick Clegg has been pushing Chancellor George Osborne to alleviate the tax burden of the low paid. In the UK many workers have only secured part time jobs with a relatively small pay packet. These people though believe that it is better to work part time than to be unemployed.
Mr Clegg would like to raise the threshold before tax is paid to £10,000 a year. After this level of income is reached the basic tax rates would kick in. Osborne has said that he is considering the matter but will not be drawn on it. He is admant that he will not borrow more money to pay for it. This means that those who could receive a tax break in one hand will have it snacthed away by another.
As usual Osborne and his fellow Tories are full of lies and hypocrisy.
First it may be worth reiterating that, "The Lib Dems secured a coalition commitment from the Conservatives to increase the personal allowance to £10,000 before the end of this Parliament" Time is moving on and if deals are to be honoured sooner or later this change will have to take place. Will it be yet one more broken Tory promise?
According to Sky news Osborne said, "I listen always - very seriously and carefully - to the Deputy Prime Minister and our coalition partners. We are a coalition and the Budget will be a coalition Budget. He knows, as I do, as the country knows, that any tax cut will have to be paid for. In other words, there would have to be a tax rise somewhere else or a spending reduction. What we are not going to do in this Budget is borrow more money to either increase spending or cut taxes."
Really Mr Osborne?
There are predictions that Mr Osborne will drop the 50p tax rate for the rich in the UK. Revenues are lower than expected which has led to speculation that wealthy people's money is going elsewhere. It seems that Osborne will be happy to pander to his chums and ease their tax burden. Where will the money to fund this come from?
Traditional Tories are pushing George Osborne to reinstate the married couple's tax break. Although in the past this blogger has gained from that tax break the time to reinstate it is not now. It may never be the time to do so. Perhaps we should remember that it was a Conservative government that scrapped it in 2000.
There are many more pieces of the tax system that are unfair However, here is a way to fund the increase in personal allowances to £10,000.
- Currently the personal allowance is £7,475. It is due to rise to £8,105 for the years 2012,/2013. The cut off threshold for receiving that tax break is an income of a £100,000 a year. This could be reduced to those earning £90,000 for example. Any such change would barely hit the pockets of those higher earners but would alleviate a great deal of UK poverty. This would fund the £10,000 allowance.
- For 2012/ 2013 the 40p higher tax rate kicks in at £34,371-£150,000. Changing that to between £40,000 and £120,000 would be self funding and leave some money to spare.
- For 2012/2013 the 50p rate kicks in at over £150,000. That should be maintained as it is.
OK obviously there is more to it than that. I did not enjoy a public school education with all its trimmings but I do know common sense.
Part of the problem for George Osborne is having the will to help those who need help. The old saying that where there is a will there is a way is so very true. The problem is that Mr Osborne wants to "look after his own". You may see that as old fashioned rhetoric, however for George Osborne it is a way of life.
In 2012 Great Britain will push its spending out to the limit with the Olympics and The Royal Jubilee. Those will be fiunded come Hell or high water. Then again according to The Guardian Osborne has more money that he had planned for and can afford a budget giveaway!