Pensioners who receive enough money to have to pay income tax will be caught in the fiscal drag trap to the tune of £1,000 each over the next three years, says an opposition political party.
Pensioners who receive enough money to have to pay income tax will be caught in the fiscal drag trap to the tune of £1,000 each over the next three years, says an opposition political party.North Shropshire MP Helen Morgan says this will amount to more than 18,000 pensions in her constituency being hit by a"£1,000 stealth tax bombshell" following the budget earlier this week.
The Lib Dems say that the decision to freeze income tax thresholds will lead to a £8 billion tax bombshell for pensioners across the country by 2027-28 – an average of £1,000 each in the amount of income 'lost' when allowances do not rise. Mrs Morgan has previously called on the Government to double the Winter Fuel Allowance to offer extra help to pensioners, paid for by a proper windfall tax on the oil and gas companies.
The MP now claims that this latest stealth tax will ‘hit pensioners in their pocket’ and should be stopped.
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