Realist, not conformist analysis of the latest financial, business and political news

Quite So Ms. Toynbee, Quite So

Something that I actually agree with Polly Toynbee upon:

Johnson didn’t understand Corbyn’s point on the effect of universal credit (UC) on low-paid workers: any Greggs worker earning just over £12,500 a year would see almost all of their £300 bonus taken away from them owing to a steep taper. Imagine imposing that 75% tax rate on high earners.

15 years ago the same high taper applied to people earning only £5,000 or so. For the personal allowance for income tax, the starting point for national insurance was that low sum. The raising of those limits has thus reduced considerably, the marginal tax and benefits withdrawal rate for the poor.

Excellent stuff, which is why I proposed it and have since supported it. And yes, it really was me – me and the CPS at least – that got this happening.

Oddly, Polly opposed it. But then we don’t expect consistency from that source, do we?

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Andrew Carey
Andrew Carey
4 years ago

“Imagine imposing that 75% tax rate on high earners.” It is actually slightly worse than that because of the effect on Council Tax Support with a typical 20% taper rate ( if it is being claimed ). But leftists seem not to care about the detail of people’s lives at this sort of level, just the broad brush high level approach which claims that ‘the Tories and Lib Dems are schit’. And if you support giving people a bit more economic freedom ( drugs, taxation, prostitution, farm land, whatever ) then you are labelled as scum because you might be… Read more »

john77
john77
4 years ago

“Boris didn’t understand” – YMBJ university drop-out Polly Toynbee! Boris, who got a Scholarship in Classics to Balliol. is far cleverer than you and perfectly well understood that Jezza was trying it on by inventing a notional worker with a high (but less than 100%) marginal tax rate who didn’t exist in reality (or if he did only one case in a thousand or so) with a complete disregard for Gordon Brown’s creation of numerous traps where the poor guy had a marginal tax rate well over 100%

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