British Families Are Being Hit by Stealth Taxes: Stuart Trow

Brits are awaiting Thursday’s Autumn Statement with even more trepidation than usual. Less-than-subtle hints from ministers have signaled sharp tax increases that would compound the cost-of-living crisis.

What fewer may appreciate, though, is that due to idiosyncrasies in the tax system, many people have been paying higher stealth taxes for years. Now thanks to rising inflation, more and more families on relatively modest incomes, especially those with young children, might be subject to marginal tax rates well in excess of 60%.

Child benefit, for example, used to be paid to families with young children irrespective of their parents’ income. During a previous ...