Timmy elsewhereJanuary 22, 2012 Tim WorstallTimmy Elsewhere3 CommentsAt the ASI. The stupid people whining about the living wage. Why not just cut taxes on poor people? previousGuardian idiocy againnextOn not recognising polygamous marriages in the welfare system 3 thoughts on “Timmy elsewhere” Matthew January 22, 2012 at 10:41 am There’s two problems with this, I think. One is it needs higher marginal rates to offset the loss of revenue from every taxpayer (unless you do what they’ve done with £100k, where you get a lower tax allowance, but that gives odd incentive effects. The second is if the very poorest paid workers have little workplace bargaining power then a higher (high?) proportion of those taxes are paid by the employer not the employee. John77 January 22, 2012 at 6:35 pm IRRELEVANT There should never be any taxes on poor people So Much For Subtlety January 23, 2012 at 5:00 am I know the answer to this. I have seen it explained before. The argument is that the richer poor people do better than the poorest poor people. If you cut taxes on the lowest paid, well the very lowest paid do not benefit as they don’t pay tax as it is. The people who benefit the most are those just under the new threshold. They get the most money back. Which is unfair. It is, apparently, better to take more money from poor people and give it back to them in a more fair manner with the poorest getting the most. Although what this may do to work rates and so on is not explained. Leave a Reply Cancel replyYour email address will not be published. Required fields are marked *Comment Name * Email * Website Save my name, email, and website in this browser for the next time I comment.