Fiscal drag’s a real drag

More than one million people are set to be dragged into the higher rate tax band by 2026, with economists warning that Britain is facing the biggest cost of living crisis for a generation.

The Treasury’s plan to freeze income tax thresholds – which comes at a time of rapid wage and price inflation – will push more than 1.2 million workers’ earnings above the 40p threshold in the next four years, according to analysis by the House of Commons Library.

Rather than a nominal drag. Har Har, look, an economics pune, or play on words.

It’ll also drag million more into the tax net at the bottom….

3 thoughts on “Fiscal drag’s a real drag”

  1. Although few people will have sympathy with those earning £100k a year (above which for c£25k the marginal tax rate is 60%) that figure of £100k has remained unchanged since 2010. I doubt it will change any time soon.

  2. It’ll also drag million more into the tax net at the bottom….

    A million more aware of where the government gets the money it pisses away.

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