Labour tax change means poor pay more
In the 2007 Budget, Gordon Brown scrapped the 10% starter rate of income tax. The change, which came into effect on 6th April this year, will affect around 324000 low income earners in Scotland.
The 10% rate applied on the first £2,230 earned above the income tax allowance (£5,225 in 2007). At the same time the 22% tax rate was reduced to 20%.
According to the Institute for Fiscal Studies those earning between £5435 and £18500 will lose out.
This tax hike on the low paid comes into effect at the same time as the SNP delivers on its promise to freeze council tax, cut prescription charges, scrap the graduate endowment and increase payments for free personal and nursing care.
Scottish Labour MPs have been silent on where they stand on the abolition of the 10 pence starting rate of income tax, although their votes did ensure the tax change was passed in the House of Commons last year.
What do you think of the recent changes to the tax system? Will your income drop because of the new 20% starting rate? Do you think the government should revise the new system? Tell us what you think.
Chancellor is Robin Hood in reverse
SNP Treasury Spokesperson, Stewart Hosie MP, commented:
"Alistair Darling is like Robin Hood in reverse, and Labour must not be allowed to forget what their 10p tax bombshell will mean for hard pressed Scottish families.
"The Chancellor is taking from the poor to cut tax for those who are better off, and its time he came out of hiding and ended his silence on this despicable tax. It is no wonder there has been open revolt amongst Labour Ministers and backbenchers who have woken up to the consequences of the Chancellors slight of hand.
“Last week Gordon Brown said he would look again at these proposals, then the Business Secretary said there would be no u-turn. We have still to hear where Alistair Darling stands, but Labour really are running around like headless chickens.
“Instead of helping the poor and those who are struggling, Labour have turned their back on the poorest.
“It’s no wonder Labour at Westminster are trying to stop the Scottish Government from introducing a fair system of local income tax, because the SNP’s proposals will show just how raw a deal people are getting from the UK Treasury."
Labour have abandoned the working class
Labour have well and truly abandoned the very people that helped secure them power in Westminster.
This tax hike will effect people who are low paid and don't have children (like me) particularly hard. Almost everyone I know will now pay higher rates of income tax, as they all earn under £18,500 per year.
It's completely disgusting that we, the working class, will pay around £12-15 pounds a month more in tax - while corporation tax on big business has been cut. At least fat cat shareholders will have more money - maybe they can redirect that to help RBS!
Labour will absolutely pay for this.
Thank you to the SNP for deciding to build, and retain under state-ownership, more council housing and for opposing this tax increase on the low paid.
Whilst I recognise you are not a socialist party, today this socialist joined you. Saor Alba