Left-Wing Think-Tank Wants Labour to Tax the Poor More

The best policy idea to come out of LibDem conference was Danny Alexander’s call for tax thresholds to be raised to £12,500, effectively taking minimum wage earners out of income tax. Reversing Gordon Brown’s complicated tax – the – poor – and – pay – them – benefits strategy. Brown effectively and deliberately made those in work on low earnings recipients of welfare benefits. Brown wanted everyone to be on state benefits (welfare “universalism”) for purely political reasons so as to maximise buy-in from all classes into the welfare state. Hence the cynical Brown/Balls attachment to child benefit for millionaire mums and winter fuel allowances for Michael Winner.

Raising the tax threshold is simple, has popular appeal and will benefit those on low earnings proportionately more than those on higher earnings. It will take some pressure off the “squeezed middle” and won’t increase the welfare trap. It isn’t a perfect policy, prominent Orange-booker Mark Littlewood, a wonk the Institute for Economic Affairs, is wary that it will result in millions of voters being unaffected by the basic rate of income tax who therefore won’t be incentivised to vote for parties and policies that favour lower taxes. He fears that low-earners will have no reason to buy-in to tax cuts if they are taken out of the income tax bracket entirely.

ippr

The organised opposition to this policy however is coming from the left-wing, EU-funded think-tank IPPR. The IPPR was founded and funded by the unions back in the Kinnock era to drag the Labour Party to the centre, in the post New Labour era and under new management it is dragging the Labour Party away from the centre towards the left. IPPR is arguing against raising tax thresholds because it won’t help the poorest who are on benefits and not working. This criticism cuts no ice because tax cuts, by definition, are designed to help taxpayers. IPPR argues that targeting benefits, sprecifically towards childcare, would be more effective and cheaper. It is as if they are speaking a different language, the problem of welfare dependency won’t be solved by paying out more benefits.

Nevertheless Guido wishes IPPR well, their wonkish sophistry may well appeal to Ed Miliband. If in 2015 the coalition parties are standing on a platform of reducing taxes on the working poor with the Labour Party standing on a platform of taxing the poor, Miliband will be on the wrong side of the dividing line. “Vote Labour and tax the poor” is a winning campaign slogan – for the coalition parties.



Tip offs: 0709 284 0531
team@Order-order.com

Quote of the Day

Charles Clarke says Cameron is the most successful PM for over a century…

“Under Margaret Thatcher the Conservatives gained 99 seats. They lost 211 under John Major, gained one under William Hague, quickly and wisely got rid of Ian Duncan-Smith, gained 32 under Michael Howard and have so far gained 133 under David Cameron who, to the great surprise of many (including senior Conservatives), has turned out to be the most electorally successful Tory leader since 1900.”

Top Posts This Week

Guidogram: Sign up

Subscribe to the most succinct 7 days a week daily email read by thousands of Westminster insiders.

Facebook

Daylight Robbery: Met Chain Themselves to £216 Billion 10 Year IT Contract Daylight Robbery: Met Chain Themselves to £216 Billion 10 Year IT Contract
Trumps Hair: Toupee or Not Toupee? Trumps Hair: Toupee or Not Toupee?
BURNHAM BLOWS DOG WHISTLE LINE BURNHAM BLOWS DOG WHISTLE LINE
DCMS FUN POLICE CALLED OFF THE CASE DCMS FUN POLICE CALLED OFF THE CASE
NEW PEERAGES LIST IN FULL NEW PEERAGES LIST IN FULL
WELSH FIRST MINISTER CONDEMNS STEEL WORKERS WELSH FIRST MINISTER CONDEMNS STEEL WORKERS

MOAT CLEANING EXPENSES SCANDAL MP AWARDED PEERAGE MOAT CLEANING EXPENSES SCANDAL MP AWARDED PEERAGE
CHICKEN TORIES CHICKEN TORIES
1 IN 5 CORBYN SUPPORTERS VOTED FOR CLEGG 1 IN 5 CORBYN SUPPORTERS VOTED FOR CLEGG
CORBYN ESCAPES #LABOURPURGE CORBYN ESCAPES #LABOURPURGE
VOICE OF AN OIL DRILL VOICE OF AN OIL DRILL
Wind Turbines: Subsidised Sun Beds Wind Turbines: Subsidised Sun Beds
FLASHBACK: EVERY DAY SEXUAL SEGREGATION FLASHBACK: EVERY DAY SEXUAL SEGREGATION
Control the Camera on this 360° Crossrail Video Control the Camera on this 360° Crossrail Video
Flashback: Labour Leader Vote Hijack, Could Rivals Do a Balotelli? Flashback: Labour Leader Vote Hijack, Could Rivals Do a Balotelli?
Andy Burnham Everyday Sexism Andy Burnham Everyday Sexism
Burnham Threatens to Quit Corbyn’s Shadow Cabinet Burnham Threatens to Quit Corbyn’s Shadow Cabinet
GORDON DOOMS YVETTE (?) GORDON DOOMS YVETTE (?)
MPs’ Deleted Tweets Twitter Don’t Want You to See MPs’ Deleted Tweets Twitter Don’t Want You to See
Corbyn: ‘I Don’t Support Putin, But…’ Corbyn: ‘I Don’t Support Putin, But…’
Foreign cash funding In campaign should be illegal Foreign cash funding In campaign should be illegal
Corbyn v Train Jihadi Corbyn v Train Jihadi
JEREMY CORBYN EQUATES ISIS TO US MILITARY JEREMY CORBYN EQUATES ISIS TO US MILITARY
MILIBAND’S TRIBUTE BEARD MILIBAND’S TRIBUTE BEARD
CORBYN AT PMQS CORBYN AT PMQS
JEREMY CORBYN’S SENSIBLE JUMPER ADVICE JEREMY CORBYN’S SENSIBLE JUMPER ADVICE
DWP FAKE OUTRAGE DWP FAKE OUTRAGE
ALIBHAI-BROWN TRIES TO SNIFF OUT BRITISH JEWS ALIBHAI-BROWN TRIES TO SNIFF OUT BRITISH JEWS
GRANNY BASHER LABOUR MP CANDIDATE BACK IN COURT GRANNY BASHER LABOUR MP CANDIDATE BACK IN COURT
BBC World News Broke Broadcast Rules by Running Green Propaganda BBC World News Broke Broadcast Rules by Running Green Propaganda