espana
The labour government in the UK are so predictable.
Avalon
"As I have said before, the poor do not pay taxes, the rich can afford good accountants to avoid their taxes, which leaves the middle income earners to get hammered."
Middle classes and the rich face biggest fall in living standards for decades
By Ryan Kisiel
Last updated at 11:05 AM on 07th December 2009
They may be hit even further by this week's Pre Budget Report, which is expected to tighten the screw on higher earners.
But the less well-off are expected to actually see their spending power rise next year. A single mother who receives around £10,000 a year is due to have an extra £130 annually.
Accountants PricewaterhouseCoopers calculated the amounts based on the Government's current tax rules and future plans.
The results showed that a middle-income family on around £30,000 a year with two young children and an unemployed partner will see their spending squeezed because of higher mortgage payments, a rise in petrol prices and planned rises in national insurance contributions.
Mortgage rates are assumed by PwC to increase from an average of 3 per cent in 2010, to 3.5 per cent in 2011 and 4.75 per cent in 2012.
Other expected rises in the cost of living is expected to make it financially harder for middle class families.John Hawksworth, head of macroeconomics at PwC, told the Independent: 'While not large in absolute terms, these increases imply much larger percentage increases in mortgage payments from their present low base.
'This has a particularly significant effect on our high-earner, given their large mortgage, with smaller but still material effects on our discretionary spending budgets of our middle-income couple.'