17 comments on “Quite right too

  1. Nothing to say about the luxury goods tax? Strange.

    (I’m also surprised you think it’s a good idea to increase the number of people who have no interest in ensuring tax money is spent wisely – those with no stake in the tax system have every incentive to vote for increased spending. )

  2. I’ve been arguing that the minimum wage should be the income tax allowance for many years now. Where do you think Ukip got the idea from?

  3. @ David

    You have to go quite a way up the income scales to find people who are net contributors to public finances, so that argument just doesn’t work. The people affected by this policy are already well aware that they can vote for all the spending that they want and it will be someone else who pays.

    That is, of course, unless they appreciate that they pay VAT, NIC, fuel duty, booze duty, cigs duty, and (indirectly) corporation tax and business rates… and if they appreciate that them paying a bit less income tax isn’t going to make them vote differently.

    And anyway, public spending isn’t decided by how we vote. The bastards spend as much as they can possibly get away with, and recover as much of it back in tax along the same principle.

  4. Even matching NI allowance to tax allowance would be a start. Alas few politicians seem interested in receiving less government money rather than receiving more money via taxes.

  5. UKIP will never win power – ever; but it will hand the keys of No 10 to Milimarx at the 2015 general election. Thanks, Nigel.

  6. Well – Doh!
    The only reason Osborne doesn’t say the same is that he can’t cope with the rise in the interest rate that would be payable on the gilts that he is issuing while trying to reduce the inherited deficit if he admitted that his budget is grossly inflationary instead of austere.

  7. For those who cannot understand the New Labour system: Brown wants everyone to pay tax in order to receive most of their money back after paying civil servants to process this so that we can reduce unemployment by hiring hundreds of thousands of civil servants.
    Pitt, Gladstone and Disraeli thought that only the rich should pay income tax and only on income that they had not earned (i.e. from land/investment).

  8. I hope Nigel isn’t falling into the same way as the other parties – talking about income tax and conveniently ignoring NI?

  9. NI and Income tax should be abolished, but since that isn’t likely to happen, NI should be merged into income tax.

  10. @ Theophrastus

    UKIP will never win power – ever; but it will hand the keys of No 10 to Milimarx at the 2015 general election. Thanks, Nigel.

    Excellent.

    After all, if you are happy for a leftie (like Dave) to occupy No 10, then you might as well have an authentic one instead.

    Might even make you think twice next time you choose your party leader!

  11. I do think there’s a high likelihood of the UK going seriously phut in the next 5 years. I’m looking forward to hearing the wails of the Brit middle classes as their savings are rubbished by inflation & their house prices plummet. Gormless Dave may only serve to marginally delay the crash. He certainly won’t prevent it.
    Better Labour & the Militwat be around to face the music. Let’s hope they get a thumping majority.

  12. Would not rule out UKIP getting into power. Who would have predicted Labour getting into power back when they were a new party? Or that the nazis would get into power in Germany last century?
    I’d say UKIP has a much greater chance than the Greens. Would not be suprised if they got a half dozen or more MPs at the next general election – and I’m no fan of UKIP.

  13. Pitt, Gladstone and Disraeli thought that only the rich should pay income tax and only on income that they had not earned (i.e. from land/investment).

    Perhaps if “should” means “should in a utopia” there’s some truth in that.

    In the real world, Pitt levied the original income tax on annual income over £60 from any source (equivalent to something like £5500 now, though these comparisons are problematic). Later, after a brief period out of office, he retained Addington’s revised system of income tax, including the Schedule for taxation of salaries.

    Disraeli and Gladstone both at times wanted in theory to abolish income tax, but neither did anything of the sort when in office. Disraeli’s 1852 budget (which was voted down) proposed lowering the income tax threshold from £150 to £100 (equivalent to something like £8500 now). Gladstone in his 1853 budget explicitly rejected the exemption of professional incomes.

  14. If I recall correctly, Tim has been asking for something like this for many years.

    The variance is that the minimum wage and the personal tax allowance should be linked inexorably – if one rises or falls, so should the other.

    At which point you start to wonder whether a single term could define both, to cement the idea in the minds of the electorate and to make it very difficult to subsequently undo.

    To get us started, I recommend the term “Guaranteed Earnings”

    By which I mean something like “earnings guaranteed by minimum wage laws that cannot be taxed or otherwise attached by any third party”

    No attachments from the CSA, or court fines/student loans deducted at source – NOTHING should be allowed to touch your “Guaranteed Earnings”

  15. Beware of unforeseen consequences. If large numbers of people are not paying income tax, what’s the reason for them not to demand more government expenditure… paid for by someone else?

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