Originally Posted by Hetzkes Ballet Teacher
The IFS report....concludes that the main winners from the 2011 tax changes will be lone parents who are not working, and low-to-middle income households without children.
...an individual will start to see their income tax and National Insurance payments increase sharply when their earnings rise above £42,475.
The winners bit, they are removing Child Benefits for higher rate earners. Those without kids won't be affected so relatively speaking will be better off.
The losers bit, the £42,475 is the point at which the higher rate tax and NI rates kick in after personal allowance limits are taken into account. This is the employees part of NI, so hitting the individual while not being a "tax on jobs" of course.
Basically it's yet another squeeze on the middle income families.