The prime minister's decision to freeze income tax thresholds will drag one in four teachers and more than one in eight nurses into the higher-rate income tax bracket, a report showed.
The report, by the influential Institute for Fiscal Studies (IFS) think tank, found that one in five taxpayers will be paying higher-rate income tax by 2027.
By 2028, the number of people paying income tax at 40 per cent or more will hit 7.8 million, the IFS said. That is almost four times as high as the share of adults paying higher rates in the early 1990s – when virtually no nurses and just one in sixteen teachers paid the higher rate.
Researchers at the think tank said it represented a “seismic shift” and would be the “biggest tax-raising measure since Geoffrey Howe doubled VAT in 1979”.
Workers face the higher 40 per cent rate of income tax on earnings between £50,271 and £125,140. In March 2021, then chancellor Mr Sunak announced the threshold at which taxpayers are charged the higher rate will be frozen until 2026. Chancellor Jeremy Hunt has since extended this for a further two years.
Diese Geschichte stammt aus der May 16, 2023-Ausgabe von The Independent.
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