How fucking marvellous

There’s a policy described here which is mine. From me. Invented by me. Which is now, in its essence, in three of the four major manifestos.

Not bad for someone who isn’t part of civil society, as Ritchie says, because I’m a neoliberal neo-feudalist or summat.

And on to youse guys out there. I’ve had a look around and I can’t quite find this data. What I want is, over the post war period, the relationship between the median wage (can’t use minimum as that’s all very new) and the personal allowance. Income tax only kicked in at around median income decades ago. What I’m interested in is a table and a chart showing the relationship. This must be something someone has done at some point so anyone know where it is?

Update, I now have this. Thanks Matthew Grey. Up until the late 60s that personal allowance was up at 55%, 60% of average earnings (mean, not median I think). since then it’s been at 30% or so, current moves are putting it back up to 40% and thus returning us, somewhat, to the 60s.

17 comments on “How fucking marvellous

  1. I wouldn’t trumpet your entrance into Civil Society just yet Tim. It’s two gatekeepers, the county’s number 1 economics bloggers and it’s Number 1 lwgal/ yax blogger are currently loving ea h other up on Twitter over their opposition to it. Apparently you’re not giving poor people “a stake” if you let them keep their hard – earned wages for themselves.
    Social justice Tim!

  2. The big worry is that by taking more people out of the tax system, they’ll keep voting themselves lots of benefits knowing they won’t have to pay for it.

    Mind you they were doing that before anyway.

  3. Andrew, that was the Lawson argument, but I think it is more likely that paying income tax gives people a sense of entitlement to government services. Even (particularly?) when the amount of tax paid is trivial and the level of service demanded huge.

    Probably even more so with NI, as that is still seen as funding the welfare state.

  4. Ironman

    I can’t see the evidence that he is ‘still’ the number 1 economics blogger anywhere on Google. I am not on Twitter this morning – In terms of Tax is this yer man Maugham I assume? – odd one to figure out. He is not an utter moron like Murphy but seems to be somewhat Jekyll and Hyde….

    Are you still banned from TRUK or have you exited voluntarily?

  5. @Matthew L: Nope, apparently Council tax, booze & baccy duty, etc also don’t count as a ‘stake’ for some reason.

  6. @Andrew M

    ‘The big worry is that by taking more people out of the tax system, they’ll keep voting themselves lots of benefits knowing they won’t have to pay for it.’

    I used to think that, but others have convinced me along the lines of the responses from Richard, Matthew L and MattyJ

    It is insane for the government to take tax off people to whom it is paying benefits, too. Of, course, we know why they do this.

  7. Matthew, no, VAT is an evil Tory tax that pays for Bullingdon Club dinners, nothing to do with society at all.

    As for other taxes:

    NI pays for the Welfare State (yes, all of it).

    Income tax is paying our stake in society (higher rate is just a way to take money off the rich; I think it’s then put in a big hole in the ground).

    Council Tax pays for libraries and day care centres.

    Booze & baccy duties are part of the fight against booze & baccy (a belief that seems to be held regardless of whether you’re for it or against).

  8. Van

    I think I’ve embarrassed hin once too often. He runs a country mile from me now; he just isn’t up to it.

  9. I pay a shed load of tax but have never received any kind of benefit.

    If I volunteer to have less of a stake in society can I have a tax cut please?

  10. It is insane for the government to take tax off people to whom it is paying benefits, too. Of, course, we know why they do this

    An interesting thought given more than 60% of households, up to some earning in excess £35k, are net tax beneficiaries. Here in Australia it is more like 80% of households, that is households up to $200k.

  11. Small print appears to have a catch however.
    It’s NMW tax free for 30hour/week.

    I.e. the first 3/4 of a real (40h) fulltime nmw workers wage is below the income tax threshold (and NI still kicks in below even that).

    My back of an envelope calc days that means ~£10k tax free allowance at current nmw levels.
    Oh, how funny, that’s what it is now…!

    In other news, politicians are lying scumbags who are always after a cheap sound bite – this one has got them loads of goods press, and will make no difference to anyone whatsoever (unless the nmw gets a massive hike)

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