Reform’s proposed tax break on overtime is likely to feature prominently in the Makerfield pitch. But it is also yet another example of a policy that is both good politics and terrible economics. The Reform party is proposing that people who earn less than £75,000 and work overtime above a 40-hour week will pay no income tax … Continue reading Why Reform’s tax-free overtime plan is a bad idea
Tag: economy
Weekly wrap – the UK is heading for “stagflation-lite”
Although not as bad as the dark days of the 1970s, the UK economy is heading for a period of falling activity, rising inflation, and higher unemployment. Government tinkering with prices won't help. By overwhelming popular demand (Sid and Doris Bonkers), I’m launching a weekly wrap of the key points made in my social media … Continue reading Weekly wrap – the UK is heading for “stagflation-lite”
Why it would be wrong to equalise capital gains tax and income tax
In principle, taxing income from labour and capital equally might appear to be fairer, simpler, and more efficient. In practice, it would almost certainly be none of these things. Wes Streeting has proposed a “wealth tax that works” as part of his Labour leadership pitch, by equalising capital gains tax (CGT) with income tax. Or in … Continue reading Why it would be wrong to equalise capital gains tax and income tax
How much should we worry about surging gilt yields?
Investors are mainly being spooked by global inflation fears, not UK politics. But the additional uncertainty created by the crisis in the Labour government is definitely not helping! Once again, UK government bonds (aka gilts) are making the news again, and not in a good way. The yields on these bonds can be read as … Continue reading How much should we worry about surging gilt yields?
Plain-speaking Economics 