December 12th, 2012

Labour Taxed Poor More and Rich Less Than Coalition

With the dividing lines for the next election seemingly drawn at PMQs, one of Ed’s main attack lines is the claim that the Tories are hurting the poor and helping the rich. But do the stats back him up? According to HMRC these are the average income tax rates across the pay scale comparing Labour between 2009-10 and the Coalition for 2012-13:

income-tax

It is clear that lower earners paid more income tax under Labour than they do under the Coalition, while high earners are paying more now than they did back in 2009-10. This graph shows the relative percentage change in average income tax rates between Labour and the Coalition:

income-tax-2

Guido isn’t too happy about the higher-earners end of things, believing that the rich have suffered enough already and we are beyond Laffer optimal tax rates, though you can bet the Conservatives are rather pleased they listened to the LibDems and raised the lower threshold. This should be hammered home by the Tories every single day until the election…


90 Comments

  1. 1
    Time for Kebab Time to go says:

    Huh

    Like

    • 9
      Kebab for the chop says:

      Fisrth

      Like

      • 14
        Kebab Time says:

        Sticks and stones may break my bones but you fakerers beating me to first every now and again will not put my record at risk

        Like

      • 56
        Red Tories, Blue Labour, Yellow Shite says:

        The figures are only for direct taxation.

        Indirect taxation has gone up under the Coalition.
        The big losers are the middle class, who have seen virtually no change in direct tax but are paying more tax thanks to ‘tax and spend’ Gideon.

        The clown even want’s to introduce a carbon tax FFS, it’s like Labour never left office.

        Like

        • 75
          Misterned says:

          Why should the conservatives bang on about being even more punative than labour with taxes? Will their base really be more likely to vote for them knowing that they have been taxing the rich more than labour did???

          Will labour’s base even acknowledge the fact and change alliegence? Not a chance. We already know that labour voters do not inhabit rational, fact based reality at all, but in an emotion based fantasy world made up of whatever the hell they want to believe in at the time.

          So this news that the tories are more (ugh) “progressive” (so-called) than labour is not a useful thing for the tories to campaign on.

          Like

        • 79
          Marion the cat says:

          Gideon has been clever and conveniently forgotten that the most important and non replaceable things in life has risen disproportionately like food and energy rising about 10%. Sure this hurts someone on minimum wage of say £200 a week when it represents over 10% of his take-home equalling fuel poverty. Now for the genuinely unfortunate to be unemployed (accident of age, whatever) the fuel and food represents more than 50% equalling extreme fuel poverty.

          Punishing some to get at others should not be a legitimate answer.

          Like

          • Daniel says:

            @MarionTheCat,

            If this were a world where the Government (& “Gideon”) could have such a direct impact on things like food and energy pricing, I’d be terrified.

            Given that, I have a question for you: Are you building a bunker to prepare for the 21st? I do hope so, it’s getting a bit late to start preparing now.

            Best Regards,
            Daniel

            Like

    • 42
      Anonymous says:

      Issue is not just income tax; it all taxes; VAT, NI, tax credits, etc. Plus pay increase as well, for e.g. FTSE 100 CEO’s were getting 25% increase a year while others got pay cuts.

      I don’t know what happened in the last 2 years but in the 13 years Labour were in power wealth gap between poor and rich were going up at a faster rate than even under Mrs T. Rather than taxing and spending New Labour went and borrowed and spent.

      Under Labour national debt doubled in 13 years. Under Cameron Conservatives it will double in 5 years. Might be Cameron and Osborne is more Blair and Brown then themselves.

      Like

      • 47
        Cookie Monster says:

        Liebour were masters of stealth tax, and benefit cuts and carpet bagging taxes particularly with respect to pensions. The income tax issue is the tip of the iceberg as far as they are concerned – at least the Cons are beginning to redress the balance, despite what Liebour spin would have you believe.

        Like

        • 57
          Red Tories, Blue Labour, Yellow Shite says:

          True and who wants to raid pensions again? Step forward Gideon ‘n’ Dave ‘n’ Nick.

          Like

      • 52
        Fishy says:

        The debt is increasing faster ‘mouse because we are now having to compound Labour’s debt.

        Like

        • 58
          Red Tories, Blue Labour, Yellow Shite says:

          Here’s a clue: cut spending on useless shite and stop subsidising it too.

          Like

    • 46
      Anonymous says:

      Unless we end up having a surplus budget or balanced budget thing will become worse and worse for the middle class and the poor.

      Good thing about having a balanced budget is government cannot spend money it hasn’t got.

      Like

      • 60
        Red Tories, Blue Labour, Yellow Shite says:

        +1

        Correct, unfortunately though, Gideon has rather a lot of trouble understanding this basic fact and like McRuin thinks that borrowing, printing and spending has no adverse consequence.

        Like

  2. 1
    Tom Watson says:

    But but but…..Milly Dowler

    Like

  3. 3
    Labour All The Way says:

    Yes, but, but, er, but er tax cuts for the rich are too far too fast and out of touch.
    *Exploding Noise*

    Like

  4. 4
    left wing,right wing, it's all the same bird! says:

    How do Liebore supporters not accept this….. EVER?

    Like

    • 21
      Polly Tuscanee says:

      1. Socialist dogma: Tories are evil baby eaters.
      2. Reality: Tories not taxing low earners as much as Labour.
      3. Reality: Tories taxing high earners more than Labour.

      Reality disagrees with dogma. Therefore ignore reality and inflict another evil Tories are eating working class SureStart babies article on the world.

      Like

  5. 5

    Labour MPs get to the top and then pull up the ladder, then they tax those below to pay for their lavish lifestyles. Socialists, they never change.

    Like

  6. 6
    Ed Millibandth says:

    Inqwuawee!! Inqwuawee!! This is an outwage!!! Miwwie Dowler!!!

    Like

  7. 7
    Rupert my Hero says:

    Just what Guido is for…never let us forget.

    Like

  8. 8
    Justine Miliband says:

    Too far, too fast, too far, too fast!

    Like

  9. 10
    Keith Vaz says:

    Any other human tragedies I can use to get my mug in the papers?

    Like

  10. 11
    Owen Jones says:

    This is not relevent to my interests.

    Like

    • 30
      The Public says:

      The interests of Owin Jones are the equivalent of ZIRP: Inflated and of zero present or future value.

      Like

  11. 13
    Hodge the Dodge says:

    Yes but only by a tiny,tiny,tiny amount.

    Like

  12. 16
    Sir William W says:

    Those figures are meaningless because they exclude National Insurance, a second Income Tax levied only money that you work for.

    Like

    • 50
      Engineer says:

      There are any number of ways you can look at it. Income tax only. Total stoppages from wages. Total stoppages allowing for pension and other tax reliefs. Total burden of taxation, including both direct and indirect taxation.

      Like

  13. 18
    Fishy says:

    Of course Toenails on DP is satisfied that Milband’s misleading of parliament at PMQ’s is OK.

    Miliband omitted to take into account tax reductions already announced when telling the HoC that working families will be worse off when benefit increases are restricted to 1%.

    When it becomes clear that the IFS figures used by Miliband only takes account of the additional tax cuts announced last week, Toenails simply says, that’s where he gets his numbers from.

    That’s OK then Toenails…it doesn’t seem to matter (or worth you challenging) that Miliband was wrong and misleading people.

    Like

    • 81
      EdButLookBalls says:

      Toenails, still covered in Brownian Shit and still spouting Liebour Shit!!! Feckin’ Beeboid Cnut!

      Like

  14. 20
    Illegal cultural enricher says:

    What is this tax thing you speak of?

    Like

  15. 22
    hodgeheimer bosch says:

    i warned ya

    Like

  16. 25
    Why is it called welfare? Is it coz it's well fair? says:

    Like

  17. 27
    Tim says:

    That is one tax, and yes, a progressive change has been made. On the other hand, with the tax credit and benefits cuts, I would think that nearly everyone who actually falls into the bands shown as most significantly benefiting from this single change will actually be worse off.

    Like

    • 35
      It started in America says:

      Tax credits are a very bad idea. Very expensive to administer and effectively an inducement for employers to pay a low wage to their unskilled Labour force and the state to top up their wages.

      It makes no sense to me that the state encourages firms to pay low wages by using taxation.

      Like

      • 44
        Engineer says:

        Especially since the state, in order to be able to top up low wages, has to levy higher taxes. Or borrow.

        Like

    • 69
      Nigelforengland says:

      Tim, are you fed up with being humiliated on PB?

      Please fuck off back there and leave us alone.

      Like

    • 70
      Nigelforengland says:

      Tim, fuck off back to PB

      Like

  18. 29
    Gordon Brown says:

    I taxed millionaire’s at 40p in the pound and abolished the 10p in the pound tax for the poor.

    It was the right thing to do.

    Like

    • 32
      Prince Vultan says:

      [Gordon is going to suicide ram Westminster Palace, Vultan turns to Gordon] That must be one hell of a planet you men come from!

      Like

    • 38
      Gordon Brown says:

      I also allowed average house prices to outstrip average earnings and compound the issue of unaffordable housing by increasing the population by 10% in 10 years.
      Income isn’t the thing that determines whether you are poor it’s what things cost that does.

      Like

      • 39
        Prince Vultan says:

        Madness!

        Like

      • 43
        Gordon Brown says:

        And no one should forget that I announced that sale of gold reserves when the price was already nearing an all time low, pushing it down a further 10%. I made an average of $275 / oz when selling off 395 tons, and failed to mention the strategic importance of the relic if a currency war ever started.

        Now who can beat a record like that ?

        Like

  19. 36
    Sandra in Accounts says:

    This will make sod all difference to Camerons chances of being PM after the GE.

    The words “snowball” & “hell” come to mind.

    Conservative core vote is collapsing.

    Vote UKIP

    Like

  20. 37
    Cheroot Smoking leftie tosser says:

    Now that Ravi Shankar is dead should I go out and get a job rather than sitting at home smoking a joint while learning to play the sitar?

    Like

    • 41
      Keith Vaz says:

      I would just like to say as the self appointed representative of everyone and everything in the Indian sub continent I am very sad to hear this news

      Like

  21. 40
    David Cameron (Feminist) says:

    I hate men – why else do you think I let Theresa May make so many gaffes.

    Like

  22. 49
    Head Auditor says:

    I do not care a toss who taxed who the most . I do not care what Cameron got up to in university over 20 years ago;

    What concerns me is that the UK economy is not setting the world alight despite having had the benefit of currency devaluation

    At worse it is actually contracting and the best case scenario is that it is flat lining .

    We have a Government who are intent on holding on to power when their own best case is that by 2016 the economy will have recovered to its 2002 level .

    If this target is achieved it seems to me we will still have 3 million unemployed .

    Just for good measure we have that economic wizard Theresa May saying if it was not for immigrants we would be having a housing market collapse.

    The icing on the cake is provided by the Governor Elect of BOE giving a little publicized speech saying he does not think a fixed target rate for inflation is a relevant consideration.

    I say no more.

    Like

    • 54
      Engineer says:

      The ‘immigrants’ one does have some bearing. Population increase by several million over a decade without a substantial increase in the housing stock will exacerbate other factors in the rise in housing costs.

      Like

      • 62
        Bluebottle says:

        So why does Mr Cameron want to stop immigration if immigrants keep house prices up?

        Like

        • 63
          Long John Silver's parrot says:

          If we come out of the EU then we will have to repatriate millions and millions of Europeans.

          This will lead to empty houses all over the place and no one will be left to pay Council Tax.

          with more and more houses on the market with no one to buy them prices will fall and fall .

          Mr Cameron must have a game plan surely.

          Like

        • 71
          Engineer says:

          Bluebottle – we want house prices coming down relative to average earnings, not going up. When an average three-bed semi costs about three times average earnings in a given area, we’ll be at about the right price level. Clearly, the best way for that to happen is if earnings rise, rather than house prices fall and push some into negative equity and repossession, so it’ll take time.

          Like

  23. 51

    The greatest lie that Labour ever told was convincing the public that they were there for the working man.

    Like

  24. 59
    john77 says:

    I’m glad you have finally noticed – I have been complaining for the last eight years that New Labour was the only UK government in living memory to make the poor poorer while making the rich richer

    Like

  25. 64
    Jimmy says:

    They should send a copy of one of Guido’s “Focus” style graphs to every family which ends up with less money and convince them they’re imagining it. Think it’ll work?

    Like

    • 66
      JH124434924329 says:

      Interesting use of words, Jimmy, ‘ends up with less’. I notice you don’t feel comfortable with words like ‘work’ and ‘earn’.

      Families who actually, you know, work, will end up with more of their own hard earned money left in their pocket.

      Oh to be one of the anointed classes that ‘end up with’ pockets full of other people’s money.

      Like

      • 72
        Jimmy says:

        “Families who actually, you know, work, will end up with more of their own hard earned money left in their pocket.”

        Only in the 7th and 8th decile. Anyone below that loses.

        http://www.resolutionfoundation.org/blog/2012/Dec/05/autumn-statement-strivers/

        Like

        • 76
          JH875434436 says:

          As I said, they will end up with more of their own money in their pocket.

          The fact that they will get less doled back from a ludicrously expensive bureaucratic arm of the state giving out ‘credits’ is a good thing.

          Were it not for the maximum imbecile setting up this idiotic system in the first place – along with the incessant very expensive looking TV ads – those families would never have needed to be taxed so much in the first place.

          Like

          • Jimmy says:

            So there are two different kinds of money?

            As far as I am aware, the spending power of these two kinds is the same, so this abstruse ideological distinction may be less comforting to those affected than you may hope.

            Like

          • Jimmy says:

            I think you’ll find it’s all their own. If you mean that some of them receive payments of which you disapprove, then that’s a cross which I suspect many of them will have been happy to bear,

            Like

  26. 65
    BBC Spokesrobot says:

    Wow, we cannot report that, even if it is true!

    Like

  27. 67
    Long John Silver's parrot says:

    Ronnie Reagan cut taxes to encourage growth in the US economy but all he did was more than double the national deficit .

    Any growth covered by the tax cuts was not enough to match the money he spent.

    Like

    • 68
      JH76432342345425 says:

      As with all deficits the problem was excessive spending, not insufficient taxes.

      At least Ronnie has the excuse that he was facing down the USSR.

      Like

  28. 73
    Rebbekah says:

    Why pick on those years alone? Lies, damn lies & statistics?

    Like

  29. 78
    Brass neck Labour says:

    …..and this should be hammered home between now and the next election. The Labour government had a top rate of tax of 40p for the best part of 13 years. You either believe in squeezing the rich til the pips squeak or you don’t. Has anyone asked any of the current shadow cabinet why they had a top rate of tax of 40p. Their ‘secret’ argument for a top rate of tax of 40p is probably the fact that all the talent and the people that make business tick in this country would have probably left the country. If that was the case when times were good then surely it’s even more important keep the high tax payers in this country paying their taxes ? If that’s not the reason why Labour had a 40p top rate of tax please enlighten us, we would love to know.
    THOSE WITH THE BROADEST SHOULDERS DID VERY WELL UNDER 13 YEARS OF LABOUR. A LOT BETTER THAN THEY EVER WILL UNDER THE COALITION !

    Like

  30. 83
    Anonymous says:

    ‘the rich have suffered enough already’ the rich don’t suffer you total dick. That’s why everyone wants to be rich

    Like

  31. 84
  32. 85

    Reblogged this on Mole Valley, Epsom & Ewell Conservative Future and commented:
    This needs to publicised as much as possible!

    Like

  33. 86
    Quite Tory says:

    Labour always cost you more! In tax and social incopetance they need sink estates crap school to keep people voting for them.

    Like

  34. 87
    FlipC says:

    You do realise that money bought more then then it does today?

    In other words if someone earning £10k a year in 2009-2010 was paid at the end of the year minus PAYE and NI they’d earn £9,500 in Mar12 money compared to £9,162.00 at the end of the 2011-2012 year.

    Tax itself may be lower, but so is value of the money.

    Like

  35. 89
    Labour hypocrites says:

    Brass neck Umunna came out with what he thought was a clever soundbite on wednesday’s Daily Politics. – “It’s the 1% and the 99%” referring to the lowering of the top rate of tax. You have a bad case of amnesia Umunna. TOP RATE OF TAX UNDER LABOUR FOR THE BEST PART OF 13 YEARS WAS 40p. Those with the broadest shoulders and the richest in society did VERY WELL under Labour. Not forgetting the unregulated banks and the massive bonus’s awarded under your watch. Don’t get all sanctimonious now you’re in opposition. Labour cannot escape the facts about 40p and the coalition need to RAM this home between now and the neck election.
    Don’t forget the abolition of the 10p tax rate and the 75p rise for pensioners !

    Like

  36. 90
    Anonymous says:

    why has chris hulne already been told his charges will be dropped in january?

    Like


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