Monday, November 05, 2007

post missing


Margaret said...

I completely agree Terence. Sadly when I have raised this path with a few Labour people I know they respond that the tax free bracket would deliver a big tax cut to those on high incomes, which they don't want to do. (Yes, I know that the second of your proposals could deal with that, but apparently it isn't somewhere many of them want to go).

Terence said...

Hi there Margaret - thanks for you comment. Your friends sort of have a point - a tax free threshold will give money to everyone, not just those who need it. However, unlike some of the other forms tax cuts could take on it won't give any more money to the wealthy than to most low income earners. And unlike moving brackets it will give money to even the lowest income earners. And, noone can say it's not a tax cut, which they can (and will try) with something technical like a bracket shift.

It is true, like I just said that money goes to everyone (unlike the very well thought out WFF) however, my plan would be to take it back off the wealthiest - so they wouldn't benefit.



Margaret said...

I completely agree Terence. I think Labour should put in a tax free bracket and then make it fiscally neutral (or close to) by putting in a new higher tax bracket. I write this as someone who is currently earning around $70K and I really wouldn't mind paying more tax to fund public services.

I also agree with you that shifting the brackets will not salve those (and I think this is starting to include those on lower incomes) who bleat about tax cuts continually.

Now you and I agree, how do we get those Labour people on board? ;-)