Timmy elsewhere

At the ASI.

The stupid people whining about the living wage. Why not just cut taxes on poor people?

3 thoughts on “Timmy elsewhere”

  1. 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.

  2. So Much For Subtlety

    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.

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