Wringing the Middle Class; Brown's Big Squeeze Adds Up to 4p on Income Tax

By Hughes, David | Daily Mail (London), April 18, 2002 | Go to article overview

Wringing the Middle Class; Brown's Big Squeeze Adds Up to 4p on Income Tax


Hughes, David, Daily Mail (London)


Byline: DAVID HUGHES

GORDON Brown slapped an eye-watering tax rise on Middle Britain yesterday to fund lavish National Health Service spending.

A swingeing increase in National Insurance contributions and a freeze on income tax allowances will raise a massive [pound]9billion a year.

The double tax whammy will let the Chancellor give NHS spending an unprecedented boost to see it increased by [pound]40billion a year in five years' time.

Mr Brown's extra tax take to cover this staggering new bill is the equivalent of adding almost 4p to basic rate income tax.

The NI move means top rate taxpayers will effectively be paying 41 per cent on their earnings after the changes kick in next April.

Old Labour MPs whooped with delight as the Chancellor swung the party back to its tax and spend roots, in the process reading the last rites over Tony Blair's Third Way.

But it amounts to anenormous political gamble. Mr Brown has staked his and Labour's reputation on pouring billions into the bottomless pit of the NHS and its bloated bureaucracy. Taxpayers will want to see real results - and fast.

An apprehensive Downing Street is bracing itself for a voter backlash as the full implications of Mr Brown's tax package sink in. Everyone who works will pay more and employers will also have to pay the new NI rates, adding a thumping [pound]4billion a year to industry's costs.

A police inspector earning [pound]37,000 a year will be [pound]27 a month worse off while a senior nurse on [pound]34,000 a year will be [pound]24 a month worse off.

Everyone on average earnings of [pound]21,400 will be [pound]15 a month worse off.

The Chancellor sugared the pill with a new Child Tax Credit that will mean cash for families with children.

It will be worth up to [pound]1,400 a year for families earning up to [pound]50,000 and then taper away with a cut-off of [pound]58,000 - or [pound]66,000 for the first child.

But middle earning-professional couples - two senior teachers earning [pound]32,000 each, for example - will find that little comfort.

Extra NI payments will cost them [pound]299 a year each, they will not qualify for the new credit - yet they will lose the [pound]520 children's tax credit they currently get. Overall, they will be [pound]1,118 out of pocket.

Mr Brown even froze the income tax personal allowance for next year.

Raising it in line with inflation would have let workers keep about [pound]2 more a week. Instead the Treasury will rake in an extra [pound]700million.

Iain Duncan Smith said Labour had returned to its old tax and spend ways - 'The sun goes down. The tide goes out.

And Labour raises taxes.' The Tory leader accused the Chancellor of breaking an election pledge. …

The rest of this article is only available to active members of Questia

Sign up now for a free, 1-day trial and receive full access to:

  • Questia's entire collection
  • Automatic bibliography creation
  • More helpful research tools like notes, citations, and highlights
  • Ad-free environment

Already a member? Log in now.

Notes for this article

Add a new note
If you are trying to select text to create highlights or citations, remember that you must now click or tap on the first word, and then click or tap on the last word.
One moment ...
Default project is now your active project.
Project items

Items saved from this article

This article has been saved
Highlights (0)
Some of your highlights are legacy items.

Highlights saved before July 30, 2012 will not be displayed on their respective source pages.

You can easily re-create the highlights by opening the book page or article, selecting the text, and clicking “Highlight.”

Citations (0)
Some of your citations are legacy items.

Any citation created before July 30, 2012 will labeled as a “Cited page.” New citations will be saved as cited passages, pages or articles.

We also added the ability to view new citations from your projects or the book or article where you created them.

Notes (0)
Bookmarks (0)

You have no saved items from this article

Project items include:
  • Saved book/article
  • Highlights
  • Quotes/citations
  • Notes
  • Bookmarks
Notes
Cite this article

Cited article

Style
Citations are available only to our active members.
Sign up now to cite pages or passages in MLA, APA and Chicago citation styles.

(Einhorn, 1992, p. 25)

(Einhorn 25)

1

1. Lois J. Einhorn, Abraham Lincoln, the Orator: Penetrating the Lincoln Legend (Westport, CT: Greenwood Press, 1992), 25, http://www.questia.com/read/27419298.

Cited article

Wringing the Middle Class; Brown's Big Squeeze Adds Up to 4p on Income Tax
Settings

Settings

Typeface
Text size Smaller Larger Reset View mode
Search within

Search within this article

Look up

Look up a word

  • Dictionary
  • Thesaurus
Please submit a word or phrase above.
Print this page

Print this page

Why can't I print more than one page at a time?

Full screen

matching results for page

Cited passage

Style
Citations are available only to our active members.
Sign up now to cite pages or passages in MLA, APA and Chicago citation styles.

"Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences." (Einhorn, 1992, p. 25).

"Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences." (Einhorn 25)

"Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences."1

1. Lois J. Einhorn, Abraham Lincoln, the Orator: Penetrating the Lincoln Legend (Westport, CT: Greenwood Press, 1992), 25, http://www.questia.com/read/27419298.

Cited passage

Thanks for trying Questia!

Please continue trying out our research tools, but please note, full functionality is available only to our active members.

Your work will be lost once you leave this Web page.

For full access in an ad-free environment, sign up now for a FREE, 1-day trial.

Already a member? Log in now.