INCOME TAX AND THE PERSONAL ALLOWANCE

Early day motion 2335, tabled 31 October 2011 by John Leech (Liberal Democrat). Signed by 11 members.

That this House welcomes the commitment of the Coalition Government to increase the personal allowance to 10,000 by 2015; recognises that increases in the personal allowance have already taken hundreds of thousands of the lowest paid taxpayers out of paying income tax altogether and that further increases in the personal allowance will benefit all taxpayers, but benefit the poorest taxpayers significantly more as a proportion of their income; further welcomes the recent increase in the minimum wage to 6.08 for adults over 21 years, which translates into a 228 weekly wage based on a 37.5 hour week, or 11,856 per year; believes that any future reductions in direct taxation should be targeted at the poorest taxpayers rather than the rich; and therefore believes that any further reductions in direct taxation should be throughfurther increases in the personal allowance, with the aim of taking those on the national minimum wage out of paying income tax altogether.

Signatures by party: Liberal Democrat 10, Conservative 1.