I think to be honest the government's budget is a bit pear-shaped where the squeezed middle have gained very little from the proposals. I think its right that the tax threshold for low earners is lifted so that more peoples money is taken out of tax altogether and the reality is nomatter what one earns all workers benefit from this. So this initiative I fully support.
Reducing the top rate of tax from 50 pence to 45 pence in the pound from 2013 I think is a mistake when the squeezed middle have seen little benefit from the budget.
To make things worse we are told that 4 million pensioners nationwide will be worse off not better off despite the increase in the Retirement Pension. I will call these "the retired squeezed middle" those that have a combination of a state and/or private pension and even in some cases earnings. Obviously I have no idea what the governments receipts are ie the differential by having a top rate at 45 pence than at 50 pence but am sure whatever the differential is surely the fairest way to distribute any tax cuts would simply be to increase the bottom rate as high as can be afforded and that way whatever is the tax free amount all workers gain equally nomatter what you earn ?
In times when there is clear economic growth and when government cuts have been absorbed some time in the future would have been the best time to reduce the top rate. Of course, its good it should come down because as long as services we need are not affected we all should be paying as less tax as possible and that includes those that earn the most. Wrong time in my opinion. I think DC needs to get a better political advisor because yesterdays budget I thought did him little favours although some good was achieved for low paid workers.
But lets not get over carried away with it as many low paid workers as a result of a higher tax free wage will just get less Tax Credits so the government are not that stupid are they ?
Squeezed middle - Not a good budget for them !