On February 28, 2019 at 2021 at 15:02
Keep his promise not to raise taxes … when raising them anyway. This is the melee that Finance Minister Rishi Sunak will perform on Wednesday to present the new British budget. The trick is not to start with income tax or VAT rates, but to disable income limits for paying income tax for at least three years (,500 12,500 for the base rate, 50,000 50,000 for the top bracket, and 40% for the top bracket).
The minister is trying to fill the hole of 43 43 billion a year in public funds. After hitting the cost of dealing with the epidemic, it was considered necessary to make an effort to recover them. In the last fiscal year (which began in early April in the UK), the government had to borrow $ 271 billion, raising debt to $ 2,130 billion, or almost 100% of GDP.
1.6 million Britons have been affected
By the next legislative elections in 2024, disabling income tax caps will be mechanically pushed, thanks to wage increases, with 800,000 UK people paying taxes when they are not paid, and 800,000 going from 20% installments to 40% installments. This would bring the Treasury an additional ில்லியன் 6 billion a year (5 5 billion for the first installment and ில்லியன் 1 billion for the second).
The finance minister, who announced at the end of November a reduction in international development aid to reach 4 4 billion, as well as a pay freeze in the public sector, also has a corporate tax on his vision. Its rate should be revised upwards from 19% to 22% or 25% at present. With an additional annual revenue of $ 3.3 billion each year, a mere 22% increase is expected to earn the state more than $ 10 billion each year.
Some conservatives are dragging their feet
Rishi Sunak should browse the example of the United States, where Secretary of State for Treasury Janet Yellen announced an increase in “corporate tax” rates from 21% to 28%. It should also emphasize the relatively painless nature of disabling income tax limits for low-income families. According to the Resolution Foundation Think Tank, a special think tank, 80% of the extra tax burden should be borne by rich 20% taxpayers, where by 2024 it will cost the poorest 40% of households less than 100 100 a year.
But this tax increase is unanimous, far from right. Former Finance Minister (now Lord) Nigel Lawson has warned of a tax hike on petrol that Rishi Sunak has already rejected, prioritizing an increase in corporate taxes. ” That would be nonsense The “Tories” should become a higher tax party. According to former President George Osborne, he already dreamed of reducing the “corporation tax” rate from 19% to 15% to send a clear signal to the post-Brexit world in terms of glamor. He obviously has to be patient.