Well, yes Polly

Tax credits are a mechanism for redressing the fall in wages as a share of GDP over the last 15 years.

Given that the fall in the wage share has been as a result of the rise in the tax share (no, really, it has, not a rise in the profit or capital share) this would seem to be easy enough to solve.

Let’s cut the tax share then, eh?

10 thoughts on “Well, yes Polly”

  1. I thought it was “other” / self employed that had risen most – where the best chart?

  2. Britmouse did one some years ago. But for today best place would be to get the ONS figures and do it again.

  3. Tax and subsidy share risen a bit (VAT rate rises) And social contributions is NI, not private pensions. So, to the extent that NI is tax, that’s a tax rise.

  4. We have Polly Toynbee visiting this coming week, along with Yasmin Aibhai-Brown, George Monbiot, Caroline Lucas, Martin Bell and Will Hutton. Aren’t I lucky.

  5. If that doesn’t cure the Yanks of turning out to cheer Bernie, nothing will.

    Martin Bell is okay-ish, I suppose, but believes his own publicity a bit much for rationality.

  6. Pendant alert: is it judicious to refer to Tox-Dadger articles under “Newspaper watch”. Would “fiction” or “propaganda” be more accurate?

  7. My post on the wage share is actually a bit out of date, since the ESA10 revisions significantly pushed up both profits and the profit share of GDP during the post-2008 recovery. Because the ESA10 revisions have not been backdated all the way to the 1950s the national accounts time series are not currently very usable for this kind of historical comparison

    The share of capital income (operating surplus/”profit”) which accrues to the household sector was until recently an under-discussed issue, I owed Tim a post on that from a couple of years back, when we discovered a Howard Reed/TUC paper (called “Why capitalists have eaten all the kittens” or something similar) making an error here. There is a now a rather famous paper by Matt Rognlie on Piketty making approximately the same error as Reed.

  8. Polly Toynbee, Yasmin Aibhai-Brown, Naomi Klein, George Monbiot, Caroline Lucas, Martin Bell and Will Hutton. All classic examples of the Economically illiterate.

    I think they only have jobs because of their inadvertent comedy value.

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