High tax, low pay

Gordon’s chains for the poor

IFS.gifThe Joseph Rowntree Foundation have been doing more good work to show how this government ill serves the poor. This time through a report from the IFS funded by them published today.

It makes sobering reading:

  • since Labour came to power someone on benefit trying to improve themselves by working harder gets to keep 2.5p less of each extra £1 they earn
  • over 2 million workers would lose more than half of any increase in earnings to taxes and reduced benefits
  • of these some 160,000 would lose more than 90p of each extra £1 they earned.

If Brown would untax the poor he could really make a difference in people’s lives. In doing so he would probably have to untax all of us. He would rather keep the squeeze on and try to help the most vulnerable with credits only these then trap the poor in dependency. Oh, that’s OK then!