I said on my last post that I would like to abolish payroll taxes for those earning the minimum wage. Incredibly, Gordon Brown has just doubled the marginal rate of income tax for some minimum wage workers from 10% to 20%. There will be many low earners who have just had their income tax bill doubled!!! His "cut" has increased income tax liabilities for almost anyone* earning more than £5,000 but less than £17,935.
This table shows the impact of the 10% rise and 2% reduction on people who have reached this break-even point. Nobody earning less than £17,935 is better off as a result of this budget and that will include most part-time workers. Whilst I would normally applaud simplification of the tax system, this move is very regressive. Poor show, Mr Brown.
*exceptions due to different personal allowances do not change the overall picture.