Tax and Fiscal Policy

Raising the tax threshold would be a welcome step

Matthew Lesh quoted in i News

Matthew Lesh, IEA Head of Public Policy, has been quoted in i News in reference to Liz Truss’ plans to raise the threshold for paying the topic rate of tax, if she becomes Prime Minister.

Matthew commented:

“The Conservatives were elected on a manifesto promising not to raise income taxes – yet have increased national insurance and, by freezing the income tax thresholds, introduced another tax increase by stealth,” said Mr Lesh.

“The higher rates for middle income earners disincentivises work and burdens millions of taxpayers.

“The return to the previous commitment would be a welcome step. While this could be debt-financed in the short run, there is also a need in the longer run for spending restraint to fund lower taxes.”

Read the full article here.