The Coalition Government, which
included Julia Porkensen's Liberal Democrats introduced a range of
punitive tax measures that badly affected of Britain's low income
families. According to the analysis by the Institute of Fiscal
Studies the average family lost £1127 per annum when taking into
account the impact of benefit and tax cuts. Income tax cuts mostly
benefited middle income families, not the low paid. The IFS report
goes on to say “Low income working age households have lost the
most as a percentage of their income from tax and benefit changes
introduced by the coalition, mainly as a result of benefit cuts”.
Tax Credits were introduced by Labour
to ensure that work pays. It was one of a range of measures that
pulled Britain out of the multi-dip recessions that dogged this
country in the 1990's, which also included the introduction of a 10%
rate of Corporation tax for new businesses and Research &
Development Tax Credits. These financial incentives helped people to
get work, start businesses and create jobs. In contrast George
Osborne has abolished the small business tax rate, so that all
companies now pay the same rate of tax whether they earn £1 or £100
Million, cut capital allowances for investment in new plant and
machinery, and increased the effective rate of tax for the low paid.
Tax Credits and the reintroduction of lower tax rates for small
businesses will help build our economy, and deliver skilled jobs to
Berwick.
Julia Porkensen first needs to
apologise to the people of Berwick for the damage inflicted on them
by the Liberal Democrats role in the Coalition Government before
claiming to be a supporter of Tax Credits.
(response the Julia's claim inteh Berwick Advertiser that they are the champions of low paid workers)
