Saturday, January 10, 2009
A higher personal allowance?
This article suggests that the personal allowance for income tax might be raised to £10,000. If so, that would be good as it would remove some low-paid workers from the tax system. However, why increases in personal allowances in the past have not been redistributive is because the personal allowance benefits all taxpayers - poor or rich. As such, unless it is married with an increase in higher rates of income tax, it will merely result in a fall in government revenue and a tax cut for the wealthy as well as for low-earners.
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