The man is simply incapable of logical thought, isn’t he?
The Conservatives remain wedded to the belief that the richest need tax cuts to encourage them to work whilst the poorest need economic sanctions to achieve the same goal. The evidence is already clear from their actions in the parliament. They have cut the top rate of income tax. They have cut the rate of corporation tax, which benefits those with wealth most. They have increased VAT significantly, which impacts those on lowest earnings most. And they have introduced penal changes to many aspects of the social security system.
This is, of course, economically illiterate. The marginal analysis on which so much conventional economic thinking relies says that the more a person has of something the less they respond to more of it. So, quite logically, the more income someone has the less each additional pound of income is worth to them. Conversely, when someone has very little any change in their income is very significant.
And they’ve also significantly raised the personal allowance thereby reducing marginal tax rates for millions of poorly paid people. On precisely and exactly the grounds that high marginal tax rates on the poor deter them from raising their incomes. And hasn’t this been a policy that Ritchie has fought against tooth and nail?
Damnit: the entire debate about universal benefit is to try to lower the marginal tax and benefit withdrawal rates as people move from no work through some work to full time and supporting themselves. Precisely because everyone does recognise that high marginal rates deter work for both the rich and the poor.