14 February 2013... I am speaking about Milliminor the 'leader', so to speak, of the Labour Party.
His speech today was, to say the least, pathetic and all he has done is reinforce his and Labour's reputation for economic and tax ignorance. Lets us look properly at his headline grabbing idea - to re-introduce a 10p starting rate of tax on the first £1,000 of taxable income.
His big claim is that this is to help the low paid. That is a demonstrable lie - the purpose is only to grab a policy headline in the hope of helping him win the next general election. It is no more than that and follows Brown's politically inspired, spiteful and economically damaging 50p tax band announced right at the end of his term.
So how 'demonstrable' is this lie? Let me show you with some simple figures, mathematics do not lie.
If he was keen to help the low paid he would not be bringing in a £1000 10p starting rate but would be introducing a £500 increase to the personal tax allowance instead. But, of course, an increase in the tax allowance is not headline worthy and does not differentiate Labour from the coalition parties as the nil rate band is being steadily increased anyway, so no headline there.
Some figures for you - I will use this years nil rate band as the basis of course so the figures are 'real' not theory.
Taxable income £8105 - no income tax paid at all.
Taxable income £8605 -
Under current rates - £100 tax paid
Under Milliminor's proposal - £50 tax paid
Under my suggestion - No tax paid
Taxable income £8805 -
Under current rates - £140
Under Millimonor's proposal - £70
Under my suggestion - £40
Taxable Income £9105
Under current rates - £200
Under Millminor's proposal - £100
Under my suggestion - £100
So you can see exactly what I mean. If he really wants to help the lower paid then he would adopt my idea and the policy of the coalition and increase the nil rate band. The cost of my idea to the Treasury would not be much more than his idea and, indeed may well pay for itself through higher economic activity from those benefiting.
Adding unnecessary complications to an already over-complex tax system is typical Labour, all in the interest of chasing votes. They are pathetic, Milliminor is pathetic and unfit to hold any major office of state. It will not be difficult for Osborne to shoot this fox in the election.
I still say that the nil rate band for income tax should be raised to the level of the minimum wage based on a 37 1/2 hour week. That really will help low paid people, it will help generate more jobs, better still combine it with a single flat low tax rate for everyone and the economy will receive a massive boost. Fiddling around with a 10p rate is nonsense.