The Tory budget was a blatant class budget. Howerer, the highly technical onture of the British taxation system obscures an understand Ing of the effects of some of the more subtle Tory proposals. Some indication of the outure of the budget con be gained from the following E20 per week, married with two children, will pay E36 a year less in dinect taxes whereas a. single man earing 20,000 per year will pay just under C2,000 a year less, For the benefit of those who feel thal even the big bourgeoisie don't have such high salaries, it should be pointed out that the chairmen of the Nationa lised Corporations get between two and three times this amount Let us go through the announcements made In the budget speech: 1. An Increase In the Old Age Pensions of £1 for single people and £1.60 for married couples This brings she basic pension rare up to a whole 06 for single people and £9. 70 for married couples It does not need much Inselbigence to realise that these amounts ate pititully made quate and represent the minimum amount of Increase that the Tories thought they could get away with, Undoubtedly a lot more old people will die of colt and hunger nest winter. 2. The increases would not take ellect until September and in any case they were being peid far, not out of the taxes, but out of increased Flat Rate and Graduated National Insurance Contributions, 3. Some adjustments of allowances dependant on the National Insurance Retirement Pensions. These were of a technical nature and were not dwelt upon since the Chancellor wished to get down to the serious business of handing more mobey to the rich.
in in 1973;4 is 30% on all income-this in on investment treome as well 4. Husband and wite are able so elect to have which incidentally there is no tax relief! their earnings taxed as though they were comparison: An ordinary worker with a wage of seperate individuals, on condition that the husband recelves the single person's allowance Instead of the marriage allowance. This was hailed by the radio as a vietory for Woren's It a husband and wite are not surtax payers allowance and the single person's allowabce (Le. S165-E325-2146) taxed at 779, Le. about 260. Clearly they will lose out it they make this election. Who, then, is gaining? To find out we must look at the surtax payers Surtant is a graduated tax, Le. It is charged at the & on the next so many pounds, and so on up to a rate (for the last year) of 10,- in the E.
a mirried couple, whereas under the new legialation there will he a set of rates for each of the hushand and wife: To take a simple example. suppose that a husband and wife had 8400 of income liable to surtax, under the cument.
the 2j- rate and £200 at the 2;6 rate, but under the new legislation they would be charged E400 ject, it seemed to be a successful diversion. at the 2i- rate. 5. Investment Income of young children is no to invest capital in his children's names and set I325 tax-free huestment income per yeur per child.