IFS Green Budget

Sometimes a single chart encapsulates a whole policy agenda. The one below from the independent Institute for Fiscal Studies looks at the impact of one of Boris Johnson’s proposals to radically overhaul personal taxes. There are two major proposals.

The first is simply to  increase the higher rate threshold (the level of earnings you must have in order to pay higher rate tax) from £50k per annum to £80k. A straight tax give away to the better off.

The second, and the subject of the chart below, is to raise the point at which National Insurance contributions start. This, they claim, is in order to help the poorest in our society. The dark green bars in the chart shows the government must believe those with most money are the poorest.

The chart also looks at an alternative way to boost the incomes of low earning families by boosting the work allowance in Universal credit. This is shown in the lighter green colours. Clearly, the IFS seems to have a view of who are the poorest in society which more closely aligns to that of people here on planet earth.

It seems caring Conservatism doesn’t care any more.