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From The Socialist newspaper, 16 February 2022

Tory stealth taxes burden 'packhorse generation'

Youth fight for Jobs protested for well-paid jobs for all on 9 October. Photo: Paul Mattsson

Youth fight for Jobs protested for well-paid jobs for all on 9 October. Photo: Paul Mattsson   (Click to enlarge)

Young workers are set to shoulder the burden of Covid spending and addressing the crisis in NHS and social care, according to the Intergenerational Foundation think tank. A recently published report outlines how the 'packhorse generation' are being taxed by stealth. For example, graduates earning £27,000 can expect to see their disposable income drop by nearly 30% in the next four years.

With inflation rising, workers are fighting to win pay rises. But as the report outlines, in some cases pay rises will push workers into the next income tax bracket, not helped by the fact that the government has deliberately frozen these thresholds. By 2025-26, the Treasury expects this to increase government revenue by over £13 billion a year. Meanwhile, those with unearned income, landlords' rents and bosses' dividends, escape.

Likewise, by freezing the student loan repayment threshold at £27,295, the government has ensured that thousands of graduates who get even a modest pay rise this year could be forced to begin repaying loans, wiping out any pay rise before even considering the true rise in the cost of living.

Finally - less by stealth, more like a punch in the gut - national insurance contributions are being raised.

The report tells us what we already know: the government wants to make workers pay for the cost of Covid. The report is correct when it states that those with unearned income should be made to pay. What it doesn't make clear is that it is the capitalist class that collects the overwhelming majority of 'unearned income'. It is incorrect, as the report does, to pose it as a question of intergenerational conflict.

What is needed is to build intergenerational solidarity of the working class, to build the strongest possible movement to challenge for the wealth hoarded by the bosses. This includes fighting in the trade unions for inflation busting pay rises, but also building a political movement that challenges for the vast wealth hoarded by the capitalist class and fights for socialism.

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In The Socialist 16 February 2022:


What we think

Britain's economic growth figures mask fragile false recovery


News

'Labour by name - Tory by policy'

Covid: Fight for full sick pay

Met police boss ousted

Tory stealth taxes burden 'packhorse generation'

Left Labour MPs under pressure over Erdington

'Stand together and fight'

Neither Washington, London nor Moscow

Australian nurses strike against understaffing and low pay


Erdington by-election

Birmingham Erdington by-election

Campaigning in Birmingham Erdington by-election


Saltley Gate

From our history: 1972 miners' strike


PCS elections

PCS Elections 2022: Time for new union leadership


Workplace news

Barts NHS strike

NEU strike at girls' school chain over pensions

University workers striking back

"If we don't fight, we won't win!"

Just Eat strike spreads and forces concessions

Join the scaffs mass picket at Scunthorpe steelworks

Worksop Wincanton workers win pay rise after strike


Campaigns

West Sussex care campaigners' victory

Why I'm going to Socialist Students conference

Campaigning to make 2 March student walkout happen

Stop eviction of Camden homeless collective

East Sussex: Poverty and cuts bring people to Socialist Party

Save St Mary's Leisure Centre

Fund us to fight for socialism


Readers' opinion

TV: 'Death of Two Black Men: Police in the Spotlight'

TV: 'A Killing in Tiger Bay'

How Cardiff Bay's redevelopment led to 'social cleansing'


 

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