Wednesday, 28 October 2015

Liberal Democrats Cost Low Paid Families £1127 per annum

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)

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