Timmy Elsewhere

At the ASI.

On why the personal allowance should be £40,000 a year per person.

4 thoughts on “Timmy Elsewhere”

  1. So … how about

    Let the Personal Allowance be £X a year.

    You can set it against Income Tax or Capital Gains.

    After that you pay at y% – same rate for Income or Gains. On EVERYTHING.

    Then if you don’t reach £Y – you get cash back. But you don’t get any other Benefit-type cash. Zilch, zero, nada. If you like you can leave some or all of your repayment with the Govt and build up a credit for when your CGT is due, or some other need.

    Just possibly a few additional allowances for some special cases (disability?).

    Not too many forms, not too many agencies, not too many avoidance schemes (sorry to some accountants).

    OK OK OK – I’m a simpleton.

  2. Of course, the happiness produced by the amount between $50,000 and $60,000 is probably vastly less than the happiness produced by the first $10,000.

    And the 30% seems to have been plucked from nowhere. By the logic of “no money over $60,000 makes you happier” tax should rise to 100% at that point, sliding downwards in proportion with the amount of happiness that is produced by each level of income.

    That’s if we strictly want to maximise happiness, of course.

  3. Comfortably Well Off Git

    I’ve never understood how they arrive at this flat line, I know the Mrs and I are happier now then when we earnt the equivalent of US$60000. We weren’t unhappy then or when we earnt much less than that, we’re just happier now that we can do things without overly worrying about the cost. Case in point, this week we shall step on an aeroplane to fly from Australia to London. Back in the $60000 days (even $100000 days) we’d have turned right when we got on board, this week we shall turn left, and that makes us much happier than turning right.

    Surely, however, one’s circumstances need to be taken into account, $60000 for a childless couple is different than $60000 for a couple with a child at uni and a couple of children in private school. (is it $60000 per adult or per family unit?)

  4. Why are you assuming that the $60,000 is before tax? Surely the respondents would have quoted a figure gross and based on normal taxation?

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