Billy Bunter
Wednesday 16th November 2016 11:38pm [Edited]
The Sussex Coast
4,666 posts
When George Osborne announced in the budget last March that he would be increasing the threshold at which the 40% income tax rate comes into effect from £43,000 to £45,000 for the 2017/18 tax year, Nicola Sturgeon stated that, under the newly devolved control of taxes (agreed following the 2014 referendum), the Scottish government would not be applying the same changes, stating that "this is not the right time for high earners to pay less". She defended this on the grounds that the Scots receive the aforementioned additional benefits.
It follows, therefore, that, if she needs to collect extra taxes to pay for these benefits from April 2017, then, clearly, up to now those benefits must have been subsidised by those who do not receive such concessions.
It is calculated that, by not copying Mr Osborne's plan to increase the threshold to £45,000 next year, around 372,000 Scots will end up paying a total of approx £190 million more in taxes.
So, if £190 million more is needed to fund those concessions in 2017/18, now that collection of tax has been devolved, where has that money come from up to now?