Monday, 17 November 2014
In a landmark study of the coalition's tax and welfare policies 6 months before a general election, it has been revealed how money has been transferred from the poorest to the better off, apparently refuting the chancellor of exchequer's claims that the country has been 'all in it together.'
According to independent research published today, and seen by the Observer Newspaper George Osborne has been engaged in a significant transfer of income from the least well off half of the population to the more affluent in the past four years. Those with the lowest incomes have been hit hardest.
In an intervention that will come as a major blow to the government's claim to have shared out the burden of austerity equally, the report by economists at the London School of Economics and the institute for Social and Economic Research at the University of Essex, finding that :-
1. Sweeping changes to benefits and income tax have had the effect of switching income from the poorer half of households to most of the richer half, with the poorest 5% in in the country in terms of income loosing nearly 3% of what they would have earned if Britain's tax and welfare system of May 2010 had been retained.
2. With the exception of the top 5% who lost 1% of their potential income. It is the better half of the country that has gained financially from the changes, with an increase of between 1.2% and 2% in their disposable income.
3. The top 1% in terms of income have also been small net gainers from the changes bought in by David Cameron's government since May 2010, which includes a cut in the top rate of income tax.
4. Two-earner households, and those with elderly family members, were the most favourably treated, as a result of direct tax changes and state pensions respectively.
5. Lone-parent families have done worse, losing much more through cuts in benefits and tax credits and higher council tax than they ever gained through higher income tax allowances. Families with children in general. and largefamilies in particular, also did much worse than the average.
6. A quarter of the lowest paid 10% have shouldered a particularly heavy burden, losing more than 5% of what would have been their income without the coalitions's reforms.
For more on this see here:-
and more here
Not that any of the above surprises too much, this is what the tories and their friends do, look after the rich, lie to the people, persecute the sick, diabled and vulnerable. Surely they are not fit to represent the people of this country. It is is time to destroy this nasty coalition.
Posted by teifidancer at 12:20