Letter to the Chancellor, Sajid Javid

Tax and the Family have written to Sajid Javid, the new Chancellor of the Exchequer, about the way families are taxed and in particular about the high marginal rates of “tax” so many taxpayers with children face. Figures seen by Tax and the Family suggest that the State takes back from a third of all families with children 80%, or in some cases 90%, of any new income.

The problem which was largely ignored by previous Chancellors has been building up for a number of years. Simply raising the income tax threshold or cutting nominal tax rates is not the answer. The letter argues that income tax ought to be related to how well off people are which means that household circumstances need to be taken into account. The letter also points out that if the Chancellor does nothing basic rate payers next year will become liable to it. The charge was only meant to apply to families in the top 15% of the income distribution.

To see the full letter click here.