Taunton MP accused of voting for “Stealth tax”
Taunton LibDems have issued a statement condemning local MP, Rebecca Pow for voting to freeze income tax bands. The attack, although personal, is actually on the Government. As Rebecca Pow is a member of the Government, she would be obliged to vote with the Government on the budget or resign.
So what is the issue here? Tax bands are the bands that determine how much income you can earn tax free. The higher bands determine the rate of tax you pay for each band of earnings.
The Conservative budget in November, introduced a new band boundary for the highest earners. So people earning over £125,140 will now pay 45%. Previously plans would allow you to earn up to £150,000 before paying the 45% rate.
However the tax free limit has been frozen at £12,571. The lowest rate of tax is 20% and that will apply to earnings between £12,571 and £50,271. The 40% rate of tax will apply to earnings between £50271 and £125,140.
However the freezing of the tax free limit and the bands at which you pay 20% will hit the lowest paid. Why? Because with inflation and wages both rising, more of your pay will be taxed. In the past the lower tax bands have been increased in line with inflation.
This is what the LibDems are describing as a stealth tax.
Gideon Amos, Liberal Democrat Parliamentary Candidate for Taunton Deane, told us: “Rebecca has let our community down. While the Conservatives government clobbers low and middle earners and starves our public services, they are disgracefully slashing taxes for the big banks. I know many people in Taunton Deane, who are already struggling, and will find these huge tax rises unfair and unaffordable. The public will be rightly furious that the cost for the government’s incompetence and chaos is falling on them.“