Budget 2012: Cutting top rate tax, raid on pensioners and postponement of debt repayment schedules till after #GE15

Well, it looks like George Osborne is going down the US Republican route of cutting taxes for the top wage earners (though he is taking £3 billion out of pensioner’s threshold funding to pay for it)… And Corporation Tax (something he flagged as long ago as 2006) is coming down to 22%. This second is, according to Paul Mason, his biggest pro growth measure:

As the Telegraph notes:

At the moment, around five million people over the age of 65 pay income tax on their pensions and other earnings. They are currently not taxed on at least the first £10,500 of their income. This will now be frozen in future years, saving the Treasury £360 million next year, £670 million in 2014, £1 billion in 2015 and £1.25 billion in 2016. The changes will help fund an increase in the personal allowance for everyone under the age of 65 and a 5p cut in the rate of income tax for the highest earners.

In better news (for Northern Ireland too, presumably) Paul Mason also notes that some of the fiscal pain has now been postponed until after the next election (that’ll be fun for Labour):

Though if you want the doom laden version of that, Peter Oborne is your man

he has abandoned his target, set out explicitly in his emergency budget after the 2010 election, to abolish the structural deficit within the lifetime of this parliament.

Adds: Gordon from JRF says, calm down, calm down…

It raises £3.3bn a year by making 4.5m pensioners who earn between £10,500 and £24-29,000ish pay a bit more tax. On average, that’s £63 more next year, and £197 in following years. Not nothing, but not whopping either. Bear in mind the state pension is going up by 5.3% this year, while the Treasury expects inflation to come down later this year.

And he posts this on Twitter:

  • OneNI

    Interesting headline Mick – top cut rate does not affect NI. You might be interested to note that 25,000 low paid are being taken out of tax

  • Barnshee

    The unmitaged bastard — hopefully those pensioners above the ground at the next election will help boot them firmly in the arse— out the door

  • Mick Fealty

    Thanks one… please feel freeto add more detail…

  • Billy Pilgrim

    Barnshee

    Couldn’t have put it better myself.

    This is a great example of what used to be called class warfare.

  • OneNI

    Billy and Barnshee – I understand your hurt at the damage caused by New Labour but could you suggest alternatives? I notice Milligromit isnt suggesting the returning to 50p tax and I note that he doesnt use the facile nonsense about ‘unpaid company tax’.
    The granny tax sounds less unfair when you think this is a tax raid on the richest generation in history. Interesting you are rushing to the defence of well to do pensioners!

  • Billy Pilgrim

    ‘could you suggest alternatives?

    Nationalisation of the banks and key industries. Massive programme of reindustrialisation. 90% top rate of income tax. Guillotines in the Square Mile.

  • SethS

    Though as you’ve noted here http://sluggerotoole.com/2012/03/20/can-the-chancellor-unlock-those-mountains-of-corporate-cash/ companies have plenty of cash. A cut in corporation tax isn’t going to encourage them to spend it is it.

  • OneNI

    Thanks Billy. I remember when the shinners supported most of those policies LOL

  • Mick Fealty

    Added some more detail… including this on the impact across incomes…

  • Mick Fealty

    There’s also mention of the rise in pension…