On 05/05/13 10:23, Martin Brown wrote:
> On 04/05/2013 19:46, Andy Wainwright wrote:
>> On 03/05/2013 11:11, Martin Brown wrote:
>>> How do you propose to balance the books if everybody gets something for
>>> nothing? Taxes on those in work would have to go up enormously.
Not so. If the change to CI is made in a revenue-neutral
way [as it can, and should, be], then most people would see little
overall change. Those not on benefits would, on average, see their
overall tax burden [and net income] unchanged, with their income
tax and NI rises offset by their CI.
>> The uneployed get an income from the taxpayer anyway.
>> Pay it to everyone, and taxpayers get this back. So tax may have to
>> rise, but after rebates this isn't going to be a big difference.
Whether tax rises is a matter of nomenclature. Treat CI
as negative income tax [very probably directly, through the PAYE
code, for many/most families], and tax doesn't rise; treat it
as a "benefit", and taxes rise to compensate.
> I don't believe you. You haven't worked the numbers through.
I don't know whether he has; I did, some years ago, when
direct tax and the principal benefits were roughly in balance. At
that time, it would have been relatively easy to replace benefits
by CI. I haven't looked at the numbers recently, and the economic
woes of the past five years may perhaps have changed things a
little, but it should still be possible to introduce CI without
too much upheaval. It would take around a decade to get "there"
from "here", which allows plenty of time for tweaking rates to
get the numbers to match.
--
Andy Walker,
Nottingham.