The Government's sweeping changes over tax rates is a "huge slap in the face" for families, the TUC general secretary said today. The new tax reforms include a cut in the top rate of income tax from 50p to 45p.
TUC general secretary Frances O'Grady said:
Cutting taxes for the richest in our society is a huge slap in the face for the millions of hard-working families struggling to make ends meet.
This move, which will lead to the loss of vital revenues, comes at a time when low-income households are seeing a huge range of vital benefits and tax credits mercilessly cut back.
It says a lot about this government's priorities that it is forever coming up with new ways to take money away from those at the bottom, whilst handing out tax breaks to those at the top.
Labour has attacked the Government over sweeping changes to tax rates that came into effect today.
The Prime Minister said that from today 24 million people will be paying £600 less income tax than in 2010, while the opposition launched a poster with the tagline "Who Wants to Bung a Millionaire? Dave Does".
Deputy Prime Minister Nick Clegg has attacked Labour for trying to "pull the wool over people's eyes" over tax reforms that came into effect today.
Labour launched its own poster - with the tag "Who Wants to Bung a Millionaire? Dave Does" - setting out claims that high earners are benefiting while millions are worse off under coalition reforms.
But Mr Clegg insisted ministers had fixed a "gross unfairness" in the system left by the previous government that allowed the rich to pay less tax than the poor. In a "letter from the leader" he told Lib Dem supporters:
"Of course, the new 45p upper tax rate - down from 50p - is also coming into effect. But don't let Labour pull the wool over people's eyes. They may complain now, but of the 13 years they were in power, the 50p rate was in place for just 36 days."
Millionaires will be raising a glass of champagne to George Osborne this weekend as he slashes the incomes of people struggling to get by to give handouts to the rich.But ordinary people - taxpayers - will be furious that George Osborne has chosen to give away £1 billion to the super-rich while their fuel and food costs rise and wages are falling.
His party knows no shame. They are trying to claim that their tax cuts benefit ordinary people but this is another lie - the truth is that while those earning over £1 million per year will be an average £100,000 better off, low income families will be around £900 worse off.
This is not the way to recover our failing economy. Creating real jobs and paying decent wages, including a one pound increase on the minimum wage, will bring down the benefits bill and get people spending again.
Instead of getting on with the job he ought to be doing, like sorting out the problems he has caused to our economy, Osborne prefers to encourage hatred and demonise the poor, both in and out of work, in an ideological attack on our welfare state.
Shadow Chancellor Ed Balls said he would not support a 50p top rate of tax if it was not raising revenue.
He told Radio 4's Today programme:
I would rather see every tax rate come down. I'm not a high tax person, I'd rather get taxes low.
I wouldn't support a 50p tax rate if it wasn't raising revenue but the reason why it's important to have it, the reason why it was introduced first in 2008 and then 2009 was at a time when families are paying a big price for the global financial crisis it is important that we share the burden fairly.