Workers earning "midrange" pay can still see meaningful savings. A warehouse supervisor earning $60,000 with $10,000 in overtime could take off a couple of thousand dollars from their federal tax bill, while a hotel bartender making $45,000 and $5,000 in tips could get all of the federal taxes withheld from their tips.

Sir Keir Starmer has refused to rule out extending the freeze on tax thresholds, which has seen millions of people dragged into paying higher rates. The freeze on National Insurance (NI) and income tax thresholds,