Quote:
Originally Posted by 1andrew1
I'd like to see an economic assessment of the Conservative Party's proposals with all that spending power taken out of the country.
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As the criteria are centred mostly around use of social security and lower incomes, I suspect less than you’re hoping.
The £38k figure appears to have been chosen because it is comfortably below the level at which an individual is likely costing the State more than they’re contributing (which seems to be around £41k).*
I think the very phrase ‘spending power’ tends to over-emphasise the effect of the thing it describes.
*Here’s what I just got out of Grok:
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According to recent discussions and searches referencing ONS data on the effects of taxes and benefits, the income level at which a UK taxpayer becomes a net contributor—paying more in taxes than receiving in benefits and services—is approximately £41,000 in gross annual income for a typical working individual. This threshold can vary based on household composition, location, and specific circumstances (e.g., children or retirement status), as net position accounts for direct taxes (income tax, National Insurance), indirect taxes (VAT, duties), cash benefits, and benefits in kind (NHS, education, transport subsidies). For non-retired households, around 46% are net contributors, with the crossover often near or slightly above the median household disposable income of £41,900 for financial year ending 2024.
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