Well, if it is for families earing over £30k they tories should say so, shouldn't they GS?
I've read the tory manifesto and it reads "Stop tax credits to families with incomes over £50,000;"
Theresa May then comes out and says "Nobody with a combined household income of £40,000 or below will be affected, and the maximum loss for those earning more than £50,000 would be just £10 a week." Not quite the same thing.
This is why there is confusion GS. The £31k figure comes in when you try to make sense of the the savings the tories claim they'll make. "George Osborne announced at the 2009 Conservative Party Conference that he would stop paying tax credits to households with incomes over £50,000. The Tories said that this would save £400m per year.
These figures are disputed " Andrew Gwynne: To ask the Chancellor of the Exchequer what estimate he has made of the annual additional revenue to the Exchequer that would arise from the removal of the payment of tax credits to households with incomes above £50,000. [303864]
Mr. Timms: The total annual tax credit entitlement for families earning more than £50,000 is estimated to be approximately £45 million.
This estimate is based on finalised incomes and circumstances of families benefiting from tax credits in 2007-08 which is the most recent year available. These statistics are available at:
www.hmrc.gov.uk/stats/personal-tax-credits/ctcw-tax-credit-final-may09.pdf
Household income has been calculated based on income used to calculate tax credit entitlement and will therefore disregard in-year income rises of less than £25,000.
The total annual tax credits entitlement of these families will differ slightly from the additional revenue to the Exchequer of excluding them from tax credits, because of effects on over- and under-payments. Analysis of these effects is available only at disproportionate cost.
Andrew Gwynne: To ask the Chancellor of the Exchequer if he will estimate the level of second income threshold for tax withdrawal required to reduce annual expenditure on tax credits by £400 million. [303878]
9 Dec 2009 : Column 407W
Mr. Timms: To reduce total annual tax credit expenditure by £400 million, it is estimated that the second income threshold would need to be reduced to around £31,000."
There is no consistency and little clarity in the claims made by the tories re tax credits.
The Labour party would be daft not to raise doubt over what the tory policy actually is.