Tory thinktank claims Osborne plans to increase unemployment, poverty and welfare dependency
A couple of weeks ago, former Tory leader Iain Duncan Smith and the think tank Centre for Social Justice published a 370 page report which was mostly about how high marginal tax rates for low paid workers cause poverty, unemployment and welfare dependency.
Today George Osborne announced that a Tory government would increase marginal tax rates for low paid workers.
(Osborne said that households earning over £50,000 will not receive child tax credits. This will mean that for each £ that a low paid worker earns, the goverment will reduce their tax credits at a greater rate than at present. This will increase the 'Participation Tax Rate' and according to the Centre for Social Justice's 'dynamic benefits model' will increase unemployment).