Tag: Taxation

UK on course for biggest tax rise in 50 years after personal thresholds frozen, analysis suggests

The government’s policy is to keep income tax and national insurance thresholds frozen until 2028, meaning many will be pushed into higher tax bands as a result of inflation.

The UK is on course for the biggest tax rise in at least 50 years because of the freeze on personal thresholds and soaring inflation, according to new analysis.

The Resolution Foundation said taxpayers are set to hand over about £40bn a year by 2028 – up from a forecast of £30bn at the time of Chancellor Jeremy Hunt’s budget in March.

The government’s policy is to keep income tax and national insurance thresholds frozen until 2028, meaning many will be pushed into higher tax bands as a result of inflation.

“Chancellors of all political stripes like this kind of stealth tax, but the scale of increase in how much it will now raise is totally unprecedented,” said Torsten Bell, chief executive of the Resolution Foundation.

“Forget about all the tax cuts being floated, they’ll pale into insignificance besides this tax rise.”

The Institute for Fiscal Studies said the freeze will also compound challenges facing many workers whose earnings are not keeping up with inflation.

Source : https://news.sky.com/story/uk-on-course-for-biggest-tax-rise-in-50-years-after-personal-thresholds-frozen-analysis-suggests-12978535

Control grocery prices or face new taxes, Canada’s Trudeau warns chains

Canadian leader says profits should not be made ‘on the backs of people who are struggling to feed their families’.

Canadian Prime Minister Justin Trudeau has announced measures to control the rising costs of living [File: Blair Gable/Reuters]
Canadian Prime Minister Justin Trudeau has warned grocery chains that they could be hit with new taxes if they do not take steps to control rising food prices.

Trudeau said the heads of the five largest supermarket chains, including Walmart and Costco, would be asked to come up with a plan to address rising prices before Thanksgiving.

Trudeau, who is facing questions about his leadership amid sagging public approval, also announced that sales tax would be waived for the construction of new rental apartments as part of measures to address cost-of-living concerns.

“If their plan doesn’t provide real relief for the middle class and people working hard to join it, then we will take further action, and we are not ruling anything out including tax measures,” Trudeau said at the end of a caucus retreat in London, Ontario, on Thursday.

Trudeau said it did not make sense that supermarket chains were making record profits at a time when many Canadians were struggling to make ends meet.

“Large grocery chains are making record profits,” he said. “Those profits should not be made on the backs of people who are struggling to feed their families.”

Source: https://www.aljazeera.com/economy/2023/9/15/control-grocery-prices-or-face-new-taxes-canadas-trudeau-warns-chains

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