Emeritus Prof Christopher May on Nostr: So how important is 'fiscal drag', the failure to raise income tax thresholds in line ...

So how important is 'fiscal drag', the failure to raise income tax thresholds in line with inflation and/or rising wages?... well the answer is that in three years an extra 4.4m people have become taxpayers.

Now you may think that's fair; we need more people to pay taxes, or you may regard it as unfair as it drags the poor into the tax system, who are least able to afford deductions from their wages.

But the key thing is its definitely a tax rise on the poorest!

#tax
https://www.theguardian.com/money/article/2024/jun/27/income-taxpayers-leaps-in-three-years-due-to-threshold-freeze