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: income tax
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
Better UK economic news owes little to Labour’s policy choices
Friday was a relatively good day for UK economic data, with the latest news on the public finances, retail sales, and the PMI survey all better than expected. This followed Wednesday’s confirmation that headline inflation fell back in January. But is this really evidence that the worst is over – and are the Labour government … Continue reading Better UK economic news owes little to Labour’s policy choices
This is no way to run a Budget!
The joint team from No.10 and the Treasury working to prepare the Budget has apparently decided to junk the plan to raise the basic and higher rates of income tax. The official line is that this is not a “U-turn” because this plan was just media speculation and never official policy. Pull the other one. The speculation … Continue reading This is no way to run a Budget!
Plain-speaking Economics 