Lower Taxes for the Lower Paid

Watching Darling spluttering explanations for abolishing the 10p rate this morning it is clear that the Brownies can’t see that their preference for taxing with one hand and then paying benefits back with the other hand, is a wasteful bureaucratic merry-go-round that doesn’t work – except on paper.

Darling says “tax is complicated”. Who complicated it? Simplify it by raising thresholds dramatically. Why should people on earnings of less than £10,000 pay any tax? They only have to fill out endless forms to get it back in welfare payments. Crazy. Raising the threshold on the low paid will incentivise people to come off benefits and work. It will reduce the cost of collection which is disproportionately higher on low incomes.

The Tories are too timid, the mood of the public has changed. New Labour has always referred to “unfunded tax cuts” and demanded to know how many hospitals and schools would correspondingly be cut. The Tories should be pointing to Labour’s “unfunded spending commitments” which have given Britain the highest budget deficit in the Western world. We can’t afford Labour’s reckless spending commitments – they are literally mortgaging our children’s taxes to pay for current spending. It is the economics of the “never, never”.




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