Do budget cuts really impact low-income families the most?

While in many ways the coalition government is damned if it does and damned if it isn't with regards to taxation and budget cuts, there is growing concern that budget cuts already announced have impacted upon low-income families far more than those on higher incomes. In monetary terms the difference in income for those in low-income households may be only a fraction of those on higher incomes, but as a percentage of their overall income it does seem to be disproportionate.

However, while there is a need to protect those on low-income there is also a need to protect those who are ultimately the oil in the wheels of the UK business arena. If we push away "rich" business entrepreneurs then who will take the chances when setting up new businesses in the future and who will create new employment positions?

The question itself is fairly easy to ask but the answer is something which has evaded governments over the years and still does to this day. Biting the hand that feeds the UK economy does not make sense but reducing the income of those at the lower end is also not the answer.