The Guardian reports:
David Cameron launched an audacious bid to woo voters in next year’s general election by pledging to raise the personal income tax threshold by £2,000 a year as well as lifting the 40% tax band to £50,000.
Casting the Conservatives as the “trade union for hardworking” people, the prime minister reached out to aspirational voters in Middle Britain by unveiling a £7.2bn double tax cutting promise, which prompted a rapturous reception at the Tory conference.
Increasing the tax-free personal allowance from £10,500 to £12,000 would, Cameron said, ensure that full-time workers on the minimum wage were exempt from paying income tax.
Excellent. We shouldn’t tax low income workers, just so we can then top their incomes up with welfare. We should have lower taxes and less welfare.
Pledged to deal with “fiscal drag”, the process by which lower income earners are dragged into paying higher tax rates, by announcing the threshold at which the 40% tax rate is paid would be raised from £41,900 to £50,000 by the end of the next parliament in 2020.
Would be good to have the NZ Government firm up its commitment to tax cuts.