Timmy elsewhere

At the ASI.

The appalling marginal tax rates faced by the working poor.

5 thoughts on “Timmy elsewhere”

  1. Could someone help me out or confirm something for me?

    If the county’s No. 1 economics blogger was to rail against very high marginal rates for the low paid and also call for the unemployed to get their TV licence for free. BUT then argued against making it free for everyonen does that make him Couargeous but Dim?

  2. Ah, but high marginal tax rates are so…socialist. And therefore good.
    Think it through.
    The marginal utility of each extra pound earned by the rich approaches zero. They have far too much money. Let’s tax’em!
    But the marginal utility of each extra penny earned by the poor is very high. So they’re doing even better than the rich. Horror.! Let’s tax’em.
    See. Easy when you think it through.

  3. The Spectator said: “So the same low-paid job will be worth far, far more to a Romanian than a Brit on benefits. That explains why so many foreign workers are happier, keener, more likely to apply – they actually get to keep all of the extra money they earn, while Brits have to sacrifice up to 84 per cent of it.”

    This is a similar complaint to those who moan about Wonga loan APRs and low VAT on energy being a subsidy. The Brit gets to keep just as much as the Romanian, assuming the Romanian’s employer is making deductions. Or does the Spectator think Romanians have no living costs?

    John the NEET’s income *increases* by 89p an hour. The £4.18 in withdrawn benefits is more than replaced by his working income.

    The difference in effort is massive but the reward is minor though, and cutting actual taxes for the low paid will help address this by making the effective reward larger.

  4. “take those working poor entirely out of the income and NI tax systems”, lordy lord, you keep saying this and i keep pointing out that it is wrong.

    All citizens should pay tax, we should all see the deduction on our pay slips.

    No one who earns should be exempt of tax.

    Its an important part of the pride and honour of an honest an upright citizen to see your contribution on you pay slip.

  5. “No one who earns should be exempt of tax.”
    Well, he isn’t if he spends any money on things other than unprocessed food, rent, public transport or clothes for his children.
    If any feminist can claim that I should say he/she because she never spends any money outside those categories, I shall buy a hat to eat.

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