Tuesday, 10 June 2008

10 p tax rate fiasco

November 2007 - Al Darling announced to greate applause the reduction of the basic tax rate to 22%, and the abolition of the 10p tax rate (everyone would pay 22% after tyheir allowance)

March 2008 - labour MPs started grumbling that the lowest paid would be worse off than before. Why - they would lose votes of course.

The government refused to U turn, but eventually came out with a package - for this year - to compensate those that would be losing out - about £600 I think.

Why - there would have been a revolt and Gordon Brown and Al Darling would have been kicked out.

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