"Thank you for the opportunity to respond to your proposal. My answers to your three questions are as follows" -
Do you agree in principle with the aforementioned policy?*
*no commitment to act upon the policy
Answer - "I agree in principle. I do, however, question the proposal to set the tax allowance at £10,000 for someone earning £17,999 but at £6,475 for someone earning £18,000 - effectively leaving those just above the threshold worse off than those just below. This would create a poverty trap, both discouraging people from seeking earnings just above the threshold, and encouraging employers to maintain wages below the threshold".
In a generic sense, do you believe that the rich should pay more tax and the poor should pay less tax?
Answer - "Yes".
If you are elected as an MP, do you pledge to campaign for income tax reform at the next parliament?*
*not necessarily as specified with the above policy
Answer - "Yes. Our party policy is to introduce a Citizen's Income".
Re "I do, however, question the proposal to set the tax allowance at £10,000 for someone earning £17,999 but at £6,475 for someone earning £18,000 - effectively leaving those just above the threshold worse off than those just below. This would create a poverty trap":
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 an extra £700. 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.