Fiscal drag

During the Conservative party leadership campaign, Boris Johnson said that the income tax thresholds should be raised to help the growing number of people captured in the higher rates by fiscal drag.[1] TaxPayers’ Alliance polling showed that 69 per cent of those asked supported income tax rates being linked to inflation or wage growth, in order to prevent people being moved into higher tax bands.

Read about fiscal drag in full here.

[1] Swinford, S., Boris Johnson’s radical plan to slash income tax for three million by raising 40p rate threshold to £80,000, The Telegraph, 9 June 2019.

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