MPs will today debate taxes and the living wage – in particular, my campaign to restore the 10p rate of income tax.
For Conservatives, a ‘starter’ rate of 10p would help us to counter the Labour war-cry that the Coalition is only interested cutting taxes for millionaires. It would prove to the electorate, that this Government is on a moral mission to help the poor, by boosting the cash income of a worker on minimum wage by more than £250 a year.
As Tim Montgomerie puts it:
‘We must declare very loudly and clearly that tax cuts for the working poor will be our priority as the economy picks up.’
As an economic reform, it would be hugely cheaper than raising the personal allowance to £12,500 and it would be symbolic of the Coalition’s mission to repair our economy. CoffeeHouse readers will remember how – famously, in his final act as Chancellor – Gordon Brown scrapped the 10p band in 2008.
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