I SEE Labour Cllr Les Morgan is making, yet again, the ‘liebour’ claims (Guardian, March 26) about the Conservatives cutting the top rate of tax for millionaires.

Why don’t you state what the facts really are, Cllr Morgan? Perhaps people and yourself need to be reminded.

During the 13 years of Labour under Blair and Brown the top rate of income tax that the millionaires paid at was 40p.

In April 2010, one month before the election, Gordon Brown increased it to 50p... we can all speculate as to why he did that!

The 50p rate was kept by the current coalition for three years until 2013, when they reduced it to 45p. It is noted that this 45p, which is still the current rate, is still 5p higher than they paid all those 13 years under Blair and Brown. So in effect, apart from the one month of April/May 2010, under the previous Labour government the top rate of income tax was 40p.

The higher earners under this government have paid 50p rate of tax for the first three years, followed by 45p for the past two years.

Now perhaps you would like to tell us if your were a millionaire, Mr Morgan, under which government would you have preferred to be taxed. The previous Labour government or the current Conservative/Lib Dem coalition?

It is also noted that at the lower end in 1997 under Labour, the income tax threshold was £4,045 — at the end of their 13 years it was £6,475, an increase of £2,430.

So at the end of the 13 years under Labour the lower earners were better off by £486 at the 20p lower rate.

Under the coalition, in 2010 the threshold was £6,475 and at the end of their five years it is now £10,600, an increase of £4,125, and by 2017-18 it will rise to £11,000.

So over the five years of the coalition, people are now better off by £825 of income tax at the same 20p tax rate, which is nearly double the tax relief given by Labour and in just 38 per cent of the timescale.

So to sum up, Cllr Morgan, under the current government the top earners have paid far more in income tax than they did under the last Labour government, while those at the lower end far less, with some four million of the lowest earners taken out of paying any income tax at all.

A EDWARDS
Fearnhead

 

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