onsdag 7 maj 2008

The Conservatives and that 10p tax band

The Conservative leader, David Cameron, is saying that he would reinstate the 10p tax band. This is worrying. The 10p tax band should never have been introduced in the first place. The solution must be to raise the tax thresholds so that there is no taxation at all on low pay. If the same amount is going to be raised from Income Tax, it will mean higher rates but most people will end up paying just a little more and the low paid will be better off. A further advantage of raising thresholds is that the poverty trap bites less severely, giving an added incentive to work rather stay on benefit, thereby cutting the cost of the government's welfare bill.

Sadly it seems as if the Conservative leader is suffering from numerical illiteracy just like most of the other politicians appear to be or he would have seen the point, which really isn't difficult to put across.

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