Coalition plans to raise the income tax allowance to £10,000 should be accelerated to tackle the growing economic crisis, Nick Clegg will say.
Actually, you need to be even braver than this. And steal a real political march on those to the left of you.
Annouce that the minimum wage, full time, full year, is to be the new personal allowance. One changes, both change.
This is just and right: if it is immoral that someone earns less than x then it is immoral that someone earning less than x is taxed.
It also entirely kills the living wage argument. For the difference between the minimum wage and the living wage, post tax, is almost entirely the tax and NI that people pay on the minimum wage.
And then there\’s still an aspiration to go for: raising the NI limit to being the same as the income tax personal allowance.
To pay for this? Lower the qualifying income for the 40% tax bracket.
Without doing the calculations I would expect that you could do this leaving post tax incomes at that current 40% limit equal to today\’s, higher taxes for those over it, lower for those under it.
Even if you cannot, yes, I do think making the top 10% to 15% of income earners (heck I\’d support the top 50% paying more so that people working part time on min wage pay no tax) pay more tax so that the poor pay no tax is a good idea.