PM hints at tax cuts for middle class: Cameron says five million workers in 40% bracket could see reduction by 2015 David Cameron said he wants to see tax reductions for all MP Dominic Raab called on him to 'ease the squeeze on middle class' Coalition has taken millions of low-paid workers out of income tax David Cameron yesterday signalled income tax cuts are being considered for the 5million workers due to be paying the 40 per cent rate by 2015. The Coalition has taken millions of low-paid and part-time workers out of income tax altogether by increasing the personal allowance thresholds from £6,475 a year to £10,000, At Prime Minister's Questions, Tory MP Dominic Raab welcomed the moves to help basic rate taxpayers, but urged Mr Cameron to act to help those on the higher rate. Speaking at Prime Minister's Questions, David Cameron said he wanted to 'see taxes cut for all' He said the Government needed to "ease the squeeze on the middle classes." Mr Cameron said: "Yes, I want to see taxes cut for all." The hike in personal allowance thresholds at the lower end means 2.7million people have been lifted out of paying any income tax at all since 2010. For the average taxpayer, it will amount to paying £705 less income tax compared to when the Coalition took power. But at the other end, the numbers dragged into paying 40p income tax is expected to rise from 4.1million today to 4.9million in 2014. Changes announced in the last Budget mean that for most people the point at which they start to pay higher rate tax will be £41,865. It means one in six workers will pay 40 per cent of every extra pound they earn to the Treasury. In 1978, only three per cent of taxpayers paid tax at the higher rate. In 1989, the figure had barely moved to just five per cent. MP Dominic Raab has called on David Cameron to 'ease the squeeze on the middle classes' Normally, the 40 per cent higher-tax threshold rises in line with inflation to take into account rises in the cost of living. But from April 2014, the point at which higher rate tax is paid is to rise by a flat 1 per cent for two years instead. This lower rise in the threshold means more workers will be caught in the 40 per cent net. This means also someone on minimum wage working full time has seen their tax bill come down by something like two-thirds. At the Conservative Party conference this month Mr Cameron said that a future Tory government would "cut taxes for hard-working people" as the economy recovers. George Osborne, the Chancellor, has ruled out borrowing more to fund tax cuts, meaning any further tax cuts are dependent on increased economic growth. There is increasing speculation that the Tories will go into the next election pledging to increase the income tax threshold further to £12,500, bringing it broadly in line with the minimum wage. Mr Raab pointed to a Lib Dem briefing note accidentally released at the party's conference last month which suggested that there should be "a further contribution" from "those earning over £50,000," arguing that "these are not the middle income earners." "It is true that, if you earn £50,000, you are in the top ten per cent of earners," Mr Raab added. But that takes no account of varying regional costs of living, especially in London, other cities and suburbs, or the South East more generally. It overlooks the fact that those earning £50,000 or more already pay 57 per cent of the income tax take, or that around two million extra middle income workers have already been sucked into paying the 40p rate of income tax in recent years. The MP said that a Lib Dem "tax assault" on the middle classes would "go down like a lead balloon during an election." Around 800,000 extra hard-working people have already been caught in the higher rate tax trap since David Cameron entered Downing Street. Official figures, from HM Revenue and Customs, show there were just three million higher rate taxpayers when the coalition came to power in May 2010. An analysis by the Taxpayers" Alliance shows the starting salary for higher rate tax would currently be £63,777, rather than £42,475, if it had been "uprated" each year by earnings, not inflation.