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…



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