Finance Bill
Philip Dunne raises his concerns that the Budget has increased the number of people who have to pay more than the 60 per cent.
marginal rate of tax if they come off working tax credit and get into work.Mr. Dunne: On tax credits, especially the marginal deductions for those who are seeking to get back into work and coming off tax credits, the problem is that the Budget increases the number of people who have to pay more than the 60 per cent. marginal rate of tax if they come off working tax credit and get into work. In the past 10 years, that number has grown from 800,000 to 1.8 million. Surely that trend is going in the wrong direction.
John McFall: The hon. Gentleman is a good and hard-working member of my Committee, but on the marginal rates of taxation he knows that, since tax credits were introduced in 1997, the 100 per cent. withdrawal rate has almost been abolished, and we are focusing on the 60 to 70 per cent. rate.
