Stealth Tax: Lib Dems propose law forcing Government to write to every taxpayer facing a tax rise
Lib Dem Media Team: 020 4548 3828 Press@libdems.org.uk Stealth Tax: Lib Dems propose law forcing Government to write to every taxpayer facing a tax riseThe Liberal Democrats will table an amendment to the Finance Bill tomorrow (Monday 28th November) which would force the Government to write to every taxpayer in the country hit by the income tax threshold freeze. The Finance Bill implements measures announced by the Chancellor in the Autumn Statement. If the amendment is passed, taxpayers would be informed by the Government if they've been dragged into a higher rate of tax and if so, by how much it will set them back. It follows the Chancellor freezing the income tax thresholds in the Autumn Statement through the 2027-28 financial year. The stealth tax freezes the point at which someone starts paying the basic rate of tax at £12,571, which will add to the tax bill of anyone earning above this amount. The threshold for the higher 40p rate of tax has also been frozen at £50,271. The stealth tax will also drag around six million people into a higher tax band, as salaries rise to match inflation while thresholds stay frozen. 3.2 million will be dragged into paying basic rate tax and 2.6 million will be pulled into higher rate tax. As part of the statement, it was confirmed that living standards are falling at the fastest pace on record, as households have less disposable income. Liberal Democrat Treasury spokesperson Sarah Olney said: “Families up and down the country are being forced into impossible choices after being hit by grossly unfair tax hikes, on top of energy bills and mortgages spiralling. “Instead of sneaking these tax rises in through the back door, the Government should write to every family in the country to spell out exactly how much this stealth tax raid will cost them. Families will need to budget for this on top of every other bill rise. “The country will never forgive Jeremy Hunt and the Conservative party for crashing the economy and adding fuel to the fire of this cost of living crisis. They have burned all economic credibility and will forever be known as the party of unfair tax hikes.” ENDS Notes to Editor: |
