Well today is Wednesday worse Wednesday, black Wednesday call it what you will. A lot of people will call it by a name which is unprintable, why? Because today’s the day the ConningLib’s policy of taxation comes into effect.
we were told we would be better off tax wise, but actually we wont be, rising inflation and cuts have seen to that already, don’t get me wrong some people will be better off, but at the expense of other people, well tough you might say, but did you know that it is going to be at the expense of the pensioners as well? Messer’s Cameron, Clegg and Osborne, have managed to live by there name again, ConningLib’s, Clegg I’m surprised at but I shouldn’t be because his ego comes before his parties policies.
Dubbed “Worse off Wednesday”, changes to personal taxes will shrink household income by £500m this year while welfare cuts remove a further £1.8bn, according to Capital Economics.
Coming on top of soaring inflation, the fiscal squeeze will have the effect of reducing real pay this month by 1.5pc.
Not everyone will be worse off. The personal tax allowance in being increased from £6,475 to £7,475, taking 880,000 people out of tax and gifting 23m basic rate taxpayers up to £170 each.
However, the cut is being paid for by an decrease in the higher rate threshold from £43,875 to £42,475, lifting 750,000 people into the 40p tax bracket, as well as a 1p rise in National Insurance.
Higher earners will be hit by a new stamp duty rate of 5pc on £1m properties and a reduction in pension tax relief from £255,000 to £50,000.
Welfare changes, such as switching to less generous inflation indexing, will cost those on benefits £2.7bn. Including January’s VAT rise, everyone is worse off.
The squeeze comes on the back of the first official annual decline in household incomes since 1981 last year.