Timmy elsewhereApril 7, 2014 Tim WorstallTimmy Elsewhere4 CommentsAt the ASI. On the plan working out. previousTempus mutandisnextYou what? 4 thoughts on “Timmy elsewhere” Ironman April 7, 2014 at 9:08 am Tim The proof of the good sense of your idea is in Howard Reed’s strident objections to it. I note that regional secretaries of the TUC are busily writing to local newspapers passing on his arguments against. Sp you might be interested to note that, in an exchange with me on Tax Research UK, he actually agreed with the principle of increasing the allowance provided that tax rates above that point were higher (simple sums tell us they would need to be). I also note Ed Balls’ main economic argument of the moment is to point to lost means-tested benefits as an argument against the plan. So apparently the solution to high marginal rates for the low paid is not to provide universal benefits, but to keep tax-free allowances low so that the high marginal rates occur slightly higher up the pay scale. In other words all arguments against your plan are bizarre. GeoffH April 7, 2014 at 10:08 am The problem with exempting more and more lower paid from income tax (NI contributions do not fade away in the same fashion) is that it leads to a larger and larger pool of non-income tax payers who are all quite content to call for higher taxes on the rest. of us. And such pressure is hard to resist from such a sizeable voting pool. Better to keep much more modest tax rate than 20% on a wide band of incomes so as to keep more and more people engaged in thinking on how to keep taxes – in the round – as low as possible. TheJollyGreenMan April 7, 2014 at 12:17 pm We are remembering the tragic event, the start of WWI, which took place 100 years ago. Before the war started only 7% of the UK population paid personal income tax. The argument we’ve had ever since is that wars are costly and that we have to pay back the war debt. Isn’t it something to aspire to, 7% of the population paying tax, and the state trimming its expenditure to match that income. We need a big cull of the parasitic governing class, including 99% of the Environmental agency. dearieme April 7, 2014 at 2:04 pm Taxes are evidently too high if The State can indulge in frivolous wars against Serbia, Iraq, Afghanistan, Libya, and, narrowly averted, Syria. We have had no end of a lesson; it has done us no effing good. Leave a Reply Cancel replyYour email address will not be published.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.