Labour and Tory truths about tax
Your support helps us to tell the story
From reproductive rights to climate change to Big Tech, The Independent is on the ground when the story is developing. Whether it's investigating the financials of Elon Musk's pro-Trump PAC or producing our latest documentary, 'The A Word', which shines a light on the American women fighting for reproductive rights, we know how important it is to parse out the facts from the messaging.
At such a critical moment in US history, we need reporters on the ground. Your donation allows us to keep sending journalists to speak to both sides of the story.
The Independent is trusted by Americans across the entire political spectrum. And unlike many other quality news outlets, we choose not to lock Americans out of our reporting and analysis with paywalls. We believe quality journalism should be available to everyone, paid for by those who can afford it.
Your support makes all the difference.WITH the Government claiming this year's tax increases cost pounds 5.75 a week and Labour claiming pounds 10 a week, it is tempting to conclude that one or other is lying. In fact these are truthful answers to different questions, writes Robert Chote.
Labour's figure is the tax rise paid by a working couple on average annual earnings of about pounds 19,500. But 'average earnings' are boosted by a relatively small number of very well off people, so more than half the population is, in fact, on below-average earnings. The Tory figure is calculated from a spread of all households, some of which pay no tax.
'Labour's household is quite well off,' said Steven Webb, of the independent Institute for Fiscal Studies. Most pensioners, lone parents, unemployed, sick and disabled earn well below the average. 'Labour argues that pensioners and the poor matter, but ignores them when it calculates the effect of the Budget.'
However, considering the sort of voters for whom the parties are competing, Labour's household could prove the more influential.
Prime Minister leaves the wild world of Westminster to win hearts and minds of Essex man
Join our commenting forum
Join thought-provoking conversations, follow other Independent readers and see their replies
Comments