IFS claims dismissed.
Discussion
The Treasury has dismissed claims by the Institute of Fiscal Studies (IFS) that average incomes in Britain have fallen due to tax rises imposed in 2002.
It described as 'complete rubbish' research by the IFS which shows that increases in National Insurance imposed in Gordon Brown's Budget of that year are partly responsible for the first fall in average incomes since the recession of the early 1990s.
According to the institute's figures, average household incomes, after tax and benefit payments, fell by 0.2% in real terms between 2002/03 and 2003/04.
But the IFS' data also reveals that the incomes of the poorest people in the UK grew between 2003 and 2004 due, in part, to new, more generous tax credits.
And whilst it concludes that, overall, average incomes in Britain fell from £409 to £408 per week, the IFS says the gap between the country's rich and poor shrank for the third successive year.
A Treasury spokesperson said the IFS' analysis of official Government figures on average incomes was 'flawed', insisting that the statistics showed that 'reported average take-home incomes have risen by almost 20% in real terms, since 1997' and that they are rising again this year 'thanks to the maintenance of stable economic growth.'
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Funny that the whole point of labour is to reduce the social "gap" and IFS shows proper statistical evidence that they are acheiving their goals. However they would rather rubbish the whole report over the losing a pound a week by middle earners to avoid the associated bad PR. One of the many reasons l find labour reprehensible is their lack of courage in their own convictions.
Its quite obvious that tax hikes have killed off any real increase in income for middle earners and that poorer people must have seen improvements unless all this extra taxation is solely going into Tony Croney pockets....um
I
It described as 'complete rubbish' research by the IFS which shows that increases in National Insurance imposed in Gordon Brown's Budget of that year are partly responsible for the first fall in average incomes since the recession of the early 1990s.
According to the institute's figures, average household incomes, after tax and benefit payments, fell by 0.2% in real terms between 2002/03 and 2003/04.
But the IFS' data also reveals that the incomes of the poorest people in the UK grew between 2003 and 2004 due, in part, to new, more generous tax credits.
And whilst it concludes that, overall, average incomes in Britain fell from £409 to £408 per week, the IFS says the gap between the country's rich and poor shrank for the third successive year.
A Treasury spokesperson said the IFS' analysis of official Government figures on average incomes was 'flawed', insisting that the statistics showed that 'reported average take-home incomes have risen by almost 20% in real terms, since 1997' and that they are rising again this year 'thanks to the maintenance of stable economic growth.'
*************
Funny that the whole point of labour is to reduce the social "gap" and IFS shows proper statistical evidence that they are acheiving their goals. However they would rather rubbish the whole report over the losing a pound a week by middle earners to avoid the associated bad PR. One of the many reasons l find labour reprehensible is their lack of courage in their own convictions.
Its quite obvious that tax hikes have killed off any real increase in income for middle earners and that poorer people must have seen improvements unless all this extra taxation is solely going into Tony Croney pockets....um
I
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