Friday, 31 August 2007

"It is VAT and NI that have direct, negative impact"

My letter in today's FT.

Says it all, really.

My latest blogpost: "It is VAT and NI that have direct, negative impact"Tweet this! Posted by Mark Wadsworth at 09:48

6 comments:

Vindico said...

Nicely put Mark. I submitted to UKIPs "Jobs & The Economy" policy group that employers NI should be cut - threshold raised to the £9k personal allowance so that £9k of earning would have no tax wedge. Even with a slightly higher rate of employers NI on earnings above £9k of 15% it would cut the cost to the employer for employees earning up to £33k, and only cost a net £2bn.

31 August 2007 at 10:04
Mark Wadsworth said...

I was thinking the other way round, get rid of all exemptions like Earnings Threshold and contracting out and have a flat fiscally neutral rate of about 7% on all income.

UKIP's flat tax/welfare proposals have already significantly reduced tax for lower paid, so it's now more a question of reducing marginal rate for employees.

And then phasing it out completely.

Let's see which one (if either) they go for!

31 August 2007 at 10:19
Vindico said...

that is another option. flattening is always good, although regressive in that it makes low wage employees more expensive. But i could be satisifed with a low flat rate.

Or combien with a citizens income and scrap the personal allowance for income tax as well. Then employers just need to pay wages net of tax and calculate a flat rate % of their wage bill to pay directly to HMRC.

31 August 2007 at 11:30
Mark Wadsworth said...

"Or combine with a citizens income and scrap the personal allowance for income tax as well. Then employers just need to pay wages net of tax and calculate a flat rate % of their wage bill to pay directly to HMRC"

Now you're talking! This is another fine idea that I submitted to UKIP's policy people, so far feedback has been positive.

31 August 2007 at 11:38
bgprior said...

Well done on getting published, Mark. Agree on NI, disagree on VAT (as a priority). Strongly agree, as you know, on Basic Income.

I've set out why I only half agree with you over at Picking Losers. I'm afraid you've provoked me into a bit of an essay, which is why I'm a bit slow in commenting.

2 September 2007 at 02:58
Mark Wadsworth said...

Nice essay, I have commented over on yours.

2 September 2007 at 10:54

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