tag:blogger.com,1999:blog-4411161795798360588.post766691365547371412..comments2024-03-26T09:38:39.888+00:00Comments on Borthlas: Tweedledum and TweedledeeJohn Dixonhttp://www.blogger.com/profile/07447224248021209852noreply@blogger.comBlogger2125tag:blogger.com,1999:blog-4411161795798360588.post-14081401172275648812013-03-05T05:53:56.212+00:002013-03-05T05:53:56.212+00:00Anon,
It may depend on how we define 'most...Anon,<br /><br />It may depend on how we define 'most' benefit - as a proportion of income or of tax paid, you're right; but as a total sum, the higher paid benefit most. For the sake of simplicity of explanation, I'll use round figures rather than actual ones.<br /><br />Say we reduce tax from 20p in the pound to 10p in the pound on all earnings from £15,000 to £25,000. Anyone earning under £15,000 gains no benefit at all. Someone earning £20,000 would benefit by £5,000 * 10p = £500. But someone on £25,000 or more a year (including those earning huge salaries) gains the full £10,000 worth of reduction, £1,000 a year.<br /><br />I don't doubt that it's a better way of reducing taxes than cutting the top rate of tax than the Tories are proposing, but it has the consequence of reducing the amount of tax paid by the higher paid as well, unless accompanied by either increases in the tax rate at higher levels or changes to the boundaries.<br /><br />Another way of looking at it is this: Such a reduction in tax rates would reduce the flow of revenue into the government's coffers. But the vast majority of that reduction in revenue is because less tax is being paid by people earning £25,000 a year and over; not because of the reduction from those earning between £15,000 and £25,000.John Dixonhttps://www.blogger.com/profile/07447224248021209852noreply@blogger.comtag:blogger.com,1999:blog-4411161795798360588.post-53188940831095586532013-03-04T15:54:37.654+00:002013-03-04T15:54:37.654+00:00" However, unless accompanied by an increase ..." However, unless accompanied by an increase in taxes for the higher paid (which the Lib Dems seem not to be proposing), then the main beneficiaries will actually be the higher paid."<br /><br />Care to expand on that? I'm a little lost. Not saying you're wrong. But surely, the WLD proposals help those on minimum wage etc the most?<br /><br />Anonymousnoreply@blogger.com