And you thought Ritchie knew about tax, didn\’t you?

Via Ritchie we get the Fair Pay Network. Which says, as the heart of its campaign, the following:

An employee earning the new NMW rate, working full time will earn around £11,500 per annum, and yet anti-poverty bodies such as The Joseph Rowntree Foundation state that a single person living in council Housing needs £13,400 a year to afford a basic but acceptable standard of living. This latest increase falls short of that.

Their numbers are a little out of date (they\’ve used last year\’s JRF number) but the important thing to note is the following. The JSF number is a *pre-tax* number. If you take the tax off that, the tax which, absurdly and immorally, we charge to the poor, then their post tax income is that very £11,500 they get full time on the minimum wage.

Thus those on minimum wage are not poor because they are paid too little but because they are taxed too much. The solution therefore is to stop taxing them. Stick the personal allowance up to that £11,500 which is the min wage and we\’re done. All those working full time are out of poverty. As recommended by the ASI, UKIP, Oxfam and, nearly, the Lib Dems.

Simples.

6 thoughts on “And you thought Ritchie knew about tax, didn\’t you?”

  1. But then those on minimum wage will keep on voting for the party which gives them more of other people’s money. If they’re not paying the cost of government, why should they benefit from it?

    I would also query the argument from authority in your last sentence. The fact that those bodies recommend a policy does not, per se, make it a good one, as we can see with many other Lab Dim and Oxfam policies, not to mention several UKIP ones.

  2. Pingback: The Great Simpleton » That £10,000 income tax threshold is still too low

  3. Yeah, Mr B.: no representation without taxation. Net recipients of government largesse, whether they be on benefit or public sector workers, lose the franchise.

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