From 2011, big cuts in personal allowances and an increase in the top rate to 45p will effectively push the rate of tax for those on £140,000 to 60p in the pound – the highest since 1988.
But, as the 23 members of the Cabinet earn £138,724, their salaries will fall just under the threshold. And they can also claim an MP’s tax-free allowance of up to £24,006 each to cover the costs of running a second home.
This means that under the new regime ordinary taxpayers would have to earn over £45,000 more than a Cabinet Minister in gross salary to take home the same amount each month.
An analysis of tax payments shows that on current pay rates, Cabinet members would take home £115,367 after their income has been taxed and the full housing allowance added.
A nice little tax payer funded earner, nice work if you can get it.
New Labour - "I want them all dead. I want their family's dead. I want their houses burnt to the ground. I want to go there in the middle of the night and piss on the ashes.".
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