Save the 10p starting rate!

[The Man From G.O.P.]

This is a Good Thing, it makes the tax flatter. Though obviously it would be better if they ditched the 20p rate and closed tax credits. Now they just need to end the 40p rate, and the UK would have a perfectly sensible 20% flat tax--possibly raising the personal exemption.

^^^^ Why Libertarians need medication.

There's no flat tax coming, there's no expectation of one, just the shifting of tax to try and shift the vote.

[The Man From G.O.P.]

This is a Good Thing, it makes the tax flatter. Though obviously it would be better if they ditched the 20p rate and closed tax credits. Now they just need to end the 40p rate, and the UK would have a perfectly sensible 20% flat tax--possibly raising the personal exemption.

^^^^ Why Libertarians need medication.

There's no flat tax coming, there's no expectation of one, just the shifting of tax to try and shift the vote.

I know there isn't, the last sentence is just my wishful thinking. However, this still made the tax flatter, which greatly reduces distortions, so it's a good move. Of course, lowering the top rate would be much better, since 40% is just an obscenely high rate, and it kicks in at a ridiculously low level too.

I agree totally, but it's not ok to fcuk the lowest bracket in the meantime.

[The Man From G.O.P.]

Charities will also loose out to due to the changes and their effect on Gift Aid with charities now able to claim 25p of every £1 back as opposed to 28p. Darling did announce three years temporary relief to allow charities to budget for the years ahead but after this, charities will be hit by an effective 3% cut in donations.

I don't think it's quite 3%- it's £1.28 reduced to £1.25. They're claiming the income tax paid on it already.

That said, your points are valid.

Perhaps we ought to alter the Tax Credits so they're directly in less taxes?

Snicker.... has it been that long since you had a smaller state, or have the idea pass through your head?

[The Man From G.O.P.]

Darling's statements "I can't re-write the budget" are hugely embarrassing.