Damn right too

But Mr Farage last month said he believed an appropriate top rate of tax was 40%. He also announced that no-one earning the minimum wage or below should pay any tax on their earnings.

It’s that second that is so important. And yes, this is a sign that Worstallism is alive and well in UKIP: as it is in the Lib Dems who have a similar idea in their plans for the next manifesto.

And do note that it entirely solves the “Living Wage” thing. Not taxing the minimum wage would make it, post tax, the same as the proposed post-tax living wage (well, to within pennies per hour). Lifting NI payments on it would make it higher in fat.

As I’ve said before we don’t actually have a low wage problem here, we’ve a tax poverty one.

13 comments on “Damn right too

  1. The Lib Dens are absolutely right about this. Those arguing against – Murphy, Reed et al- have resorted to arguments so deceitful they even shame them. Murphy for example opposes this because relatively wealthy people will benefit as well (he actually said just as much at one point) yet he supports a basic wage and insists it must be for all, irrespective of other income. I would support that as well. But to support that and oppose raising personal allowances? Go figure.

  2. And yet…leaflets from Wythenshawe tell us UKIP is “against the bedroom tax”. That isn’t Worstallism.

  3. I’m afraid there’s another aspect to consider, than just the financial. Paying some tax makes you ‘part of something’ – that something being society.

    Don’t pay in? Don’t expect to take anything out.

    And…against the Bedroom Tax?! FFS! When did UKIP become the Free Lunch party?

  4. UKIP are against the Bedroom Tax not in principle, but because the lack of housing liquidity and poor implementation means it has been highly unfairly applied in a significant number of cases.

    They are however strongly in favour of a reduced total benefits cap.

  5. Mmm. I’ve always been rather in favour of taking people out of the tax net altogether, but Julia may have a point.

  6. @JuliaM: I expect the poor will continue to have to pay council tax, VAT, booze & ciggy duty, TV licence, etc.

    Personally paying tax doensn’t make me feel a part of anything, just ripped off.

  7. If people know they’re not going to pay any tax, they’ll vote for high-taxing, high-spending governments. If the numerous poor know that a reduction in taxes will benefit them too, and in terms of disposable income a hell of a lot more, they might be more interested in governments that promise to reduce it.

    That said, it hasn’t worked so far.

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