Inflationary stealth tax will eat into Budget 2018 gains
Wage rises mean burden won’t fall for many despite budget measures
The failure to index the tax system fully for wage inflation means a bit more of any wage increase will go in tax. Photograph: iStock
Wage increases will mean that many people end up paying as much tax as a proportion of their income next year as they did this year, despite the budget day changes. The failure to index the tax system fully for wage inflation means a bit more of any wage increase will go in tax.