Save the 10p starting rate!

[Bono]

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.

[Bono]

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.

[Bono]

The Tories and the right-wing media (not saying you, afleitch) have been a bit dishonest on this- no change then. While the core voters may not read those papers, the floaters certainly do.

The dishonesty has radiated from Number 10; dishonesty to the voter and to their own backbench. However as the Lib Dems have noted, it took the Labour backbench a year to grumble about this (with a few honourable exemptions) However I am aware that Tory opposition to the measure is mostly to 'sock it' to the government. At the same time we have internally looked at measures desigjned to lighten the tax burden on the working poor including 'untaxing' the poor by allowing thos earning under 10-15k to pay no tax or NI contrcibutions whatsoever paid by curtailing WTC and probably putting a penny on the top rate of tax. I think we have to put together a package to voters on this.

Did I read that well? Are the tories seriously suggesting raising the top tax rate? Well, that does it. Cameron is a complete sellout who will do or say anything to get elected. I don't know how the party could have allowed a social-democrat like this guy the leadership, but he has successfully destroyed everything that made the Conservative Party distinct from the others. All that's left is cosmetics.

[Bono]

Another Tory alternative expressed is more 'neutral' 9according to those who proposed it)

You offer people choice in taxation between two options.

1. A higher personal allowance of £9,000 per year and then paying tax at 33% on everything above that.

2. Claim a 'Citizen's Income" of current income support/Pensions credit levels depending on age (£57 or £114 a week) and pay 33% tax on ALL your income. Also double child benefit to £34 a week for all under 18s.

Ther theory being; 'if you earn less than £9,000 you are a net benefit claimant, if you earn more than £9,000 you are a net taxpayer. There is no particular jump in net income at £9,000 and nobody's total marginal withdrawal rate is more than 33% (whether you see this as losing benefits or paying income tax is neither here nor there).

Most taxpayers would be around 20 a week better off. It also makes for a simpler tax system. and of course the entire welfare state, tax credits and so on are replaced by the above, with the exception of disability benefits, SSP, housing benefit etc so that you don't loose benefits by taking on a job.

Now we're talking. I hope whoever proposed this gets a cabinet position.