Labour MP (Oxford East), Andrew Smith's reply
"I do support income tax reform for fairness".
"I do support income tax reform for fairness".
On your specific questions:
1) "I am not convinced that raising the personal allowance is the fairest or most effective way to help those on low incomes; I can see that the regressive impact of a blanket increase in allowances is softened in your proposal by the £17999 cut off, but it creates another problem - ie the impact on someone whose income goes up from £17999 to £18001".
2) "Yes".
3) "Yes".
Best wishes
Andrew Smith
Labour candidate for Oxford East
1) Do you agree with the aforementioned policy?*
*no commitment to act upon the policy
2) In a generic sense, do you believe that the rich should pay more and the poor should pay less?
3) Do you pledge to campaign for income tax reform at the next parliament?*
*not necessarily as specified with the above policy
1) Do you agree with the aforementioned policy?*
*no commitment to act upon the policy
2) In a generic sense, do you believe that the rich should pay more and the poor should pay less?
3) Do you pledge to campaign for income tax reform at the next parliament?*
*not necessarily as specified with the above policy
Re "I can see that the regressive impact of a blanket increase in allowances is softened in your proposal by the £17999 cut off, but it creates another problem - ie the impact on someone whose income goes up from £17999 to £18001":
ReplyDeleteAs it currently stands, a person that earns £18,000 a year will get taxed £2,305 (excl NI contributions and incl tax free personal allowance). This will remain the same under FTC policy, we are not changing this. Compared to the current system, they will not pay anything extra. However, those that earn less than £18,000 will be better off, in terms of paying less tax. This will be part subsidised by ensuring that the 50% additional rate is applicable for anyone that earns over £100,000 a year.
We hope that has been clarified.
Fairer Tax Campaign Team
PS - Further note:
ReplyDeleteA minor tax gap anomaly will arise for those that earn £18,000 to £18,880. We propose that this can be covered by offering a tax rebate (in part or whole) to anyone that falls into the aforementioned band. Compared to the status quo, those that earn less than £18,000 will be far better off as a direct result of our changes, in terms of paying less tax. Thus, millions of people on lower incomes will benefit from the changes that we propose.