Tax raids leave under-30s hardest hit

Research by the Intergenerational Foundation think-tank reveals that the soaring cost of living will disproportionately impact on the under-30s. Younger workers are being unfairly targeted in a “tax by stealth” caused by freezes on income tax brackets and the student loan repayment threshold, as well as April’s national insurance rise. The disposable income of a graduate on £27,000 will drop by almost 30% over the next four years, the report claims. Commenting, Angus Hanton, co-founder of the foundation, said: “After all they have sacrificed to protect older generations during the pandemic, lower-earning younger generations will be forced to shoulder the cost of government promises to increase social care spending and reduce COVID-19 debt, when both spending decisions were made to protect older generations.” A more reasonable policy, he adds, would be to charge national insurance on landlord and dividend income, which he calculates would raise £24bn a year.

 

The Observer

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