New Labour Tax Rip Off
Darling wants your money to pay-off his rich friends
AS
low paid workers open their wage packets
and wage slips at the end of this month
they are in for a big surprise.month they are in for a big surprise.
For anyone on an annual salary of under £17,000
per year they will actually receive less
take home pay than they did at the end of
the previous month.
That’s all down to robber Brown’s last budget
which abolished the 10p rate of tax, reduced
the basic rate of tax from 22p in the pound
to 20p in the pound and raised the tax
thresholds for all levels of salaries in favour
of the better off.
The
net result a shift in the tax burden from
middle and high earners to the lowest paid
workers in society as the table below shows.
This was the
parting gift of former iron chancellor
Brown to the poorest sections of society.
This comes on top of his initial gift in 1997
of abolishing the tax credits on the dividends
of pensioner’s investments.
It is estimated that the net effect of this move
was to reduce the value of a pension by
about 30 per cent over average person’s lifetime.
New Labour has reversed the policy of progressive
taxation where tax rates are increased
the more a person earns.
Instead they have pandered to the needs of
trying to maintain consumer demand as their
neo-liberal economic project hits the buffers
by boosting the spending power of middle
and higher earners.
This is at time when inflation is running rampant
again with daily increases in food prices,
rocketing utility prices and soaring petrol
prices.
This together with increase in housing costs,
as lenders hit the poorest and least able
to pay sections of society, means that inflation
is running far above the government’s official
figures of 2.5 per cent.
These costs of basic goods and services are
what the lowest paid spend the overwhelming
part of their income on. They will be badly
hit by this callous premeditated move.
It is not as if there is not enough money to
help the poorest sections of society.
The government have spent £110billion on
nationalising Northern Rock to stop a collapse
of the global financial markets, billions
of pounds on illegal wars in
The Scottish Socialist Party is for a progressive
taxation system where people pay tax according
to the levels of their income to help pay
for hospitals, schools, free prescriptions,
free school meals and a free public transport
system - projects that will benefit the
whole of society and enrich the lives of
its poorest members.
If Labour MPs have an ounce of compassion
and social conscience they should oppose
this vicious anti-working class tax change.