Yes, quite

Mr Pirie said this “would make the UK a very attractive location for world businesses, and drive a real boost to economic growth”.

He said that other levies, such as capital gains tax, should also be abolished, and that income tax should be flattened over time, by progressive reduction of the top rate. He said that “the aim” should be to deliver a system where workers on the minimum wage paid no tax, while those earning more would face a flat rate.

And I can imagine who would chunter at this. But tax must be progressive!

And yes, a flat tax with an allowance is progressive.

7 thoughts on “Yes, quite”

  1. Bloke in North Dorset

    I haven’t run it through a spreadsheet but I’d have thought that to a 1st order approximation anyone on over around £150k per annum is effectively on a flat rate.

    The only difference to what Madsen is advocating and Murphy demands is the allownace and how it is applied.

  2. This wpn’t get anywhere in the UK Tim. We live in a couple try where those with enough money to ponce around converting windmills can argue that poor people get disenfranchised by us taking less tax off them and don’t get laughed at.

  3. If any/most of these policies had been proposed by the Brexit side pre-referendum I’d have jumped on board.

    Sadly, the same old fudging and troughing is likely to go on.

  4. Didn’t Murphy (who has no connection whatsoever, nosiree, with the Labour party) suggest Own Smith as Labour leader before Smith had even announced he was standing?

    And didn’t Murphy, who had previously supported Corbyn suddenly abandon him when it was Margaret Hodge’s signature on the motion of no confidence?

  5. CGT should be levied *but only on real gains* at the same rate as income tax. Any differential creates tax arbitrage which is a negative-sum-game (there is no economic benefit and the cost of setting up the arbitrage and paying blood-sucking leeches/tax lawyers).
    Geoffrey Howe had this right, along with so many other things.

  6. Dear Mr Worstall

    Mr Pirie?

    ” …a flat tax with an allowance is progressive.”

    Anyone earning more than the allowance is paying infinitely more income tax than someone earning less – you can’t get more progressive than that.

    DP

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