Monday, September 04, 2006

New Labour's wealth redistribution

Who says New Labour doesn’t do wealth redistribution?:

‘The poorest households in Britain are now paying a higher share of tax and getting a lower share of benefits than before Labour came to power, according to new research …

‘A paper by the Centre for Policy Studies, the right-leaning think-tank, concluded the percentage of the total tax take paid by the poorest fifth of households rose marginally from 6.8 per cent in 1996-97 to 6.9 per cent in 2004-05.

‘Over the same period, their share of benefits fell from 28.1 per cent to 27.1 per cent, according to the research, based on Office for National Statistics data on the effects of taxes and benefits on household income.

‘People on middle incomes appeared to be gainers, with the middle fifth of households paying 16.9 per cent of the total tax take in 1996-97, which fell to 16.4 per cent in 2004-05. Their share of benefits rose from 20.8 per cent to 21.5 per cent.’

So much for helping hard-working families.


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