Tuesday, 9 October 2012

Reader's Letter Of The Day

From City AM's Rapid Responses:

Taxing income flows, rather than wealth, is unfair on the cash rich but asset poor. They cannot acquire assets due to the asset boom – especially in housing, which is artificially propped up to ensure that the borrowings secured by financial institutions on these assets don’t go underwater.

With regards to negative effective tax rates*, look at the costs of living – the actual costs, rather than the manipulated official figures ­– compared with wage growth. The benefits these people are receiving are not welfare for them, they’re welfare for their employers.

Carl Thomas


* He is referring to the CPS report, see my post of this morning.

3 comments:

Derek said...

Excellent letter. I've never seen it put like that before.

Mark Wadsworth said...

D, yes, it's blindingly obvious if you think about it. But logic only gets you so far with Homeys, and usually it gets you nowhere.

Bayard said...

"The benefits these people are receiving are not welfare for them, they’re welfare for their employers."

as has always been the case, ever since the Speenhamland System in the C18th. Good to have it reiterated, though: it can't be said too often.