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Friday, 18 April 2014

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‘Scrap income tax for lowest paid’ says Carlisle MP

Carlisle MP John Stevenson says that nobody on the minimum wage should pay income tax.

Carlisle MP John Stevenson photo
John Stevenson

The Conservative is calling for the personal allowance – the amount anyone can earn before they start paying tax – to be linked to the minimum wage.

At present, the personal allowance for people under 65 is £8,105.

Linking it to the adult minimum wage of £6.19 an hour would raise the threshold to £12,875.

Everyone earning less than that would stop paying income tax.

And basic-rate taxpayers paid more than £12,875 would get a tax cut worth £954 a year.

Mr Stevenson said: “The Government is moving towards a personal allowance of £10,000 by the end of this Parliament, which will be one of the biggest tax cuts there has ever been for the low paid.

“I want to see us go one step further and link the minimum wage to the personal allowance so that anyone on the minimum wage would not pay income tax.

“It would cost a lot of money. But it is something we should be working towards as a long-term goal.

“It would be particularly beneficial to Carlisle where we have a tendency towards a low-wage economy.”

Mr Stevenson has already raised the idea in the House of Commons, tabling a question for Danny Alexander the Liberal Democrat Chief Secretary to the Treasury.

Mr Alexander responded: “I agree that the long-term objective, which I and my party share, should be to link the personal allowance to the minimum wage.

“However, a considerable cost would be attached to that.”

The Coalition Government raised the personal allowance from £7,475 to £8,105 in April.

But Chancellor George Osborne announced in his March Budget that it would rise again to £9,205 in April 2013.

That will give basic-rate taxpayers a tax cut of £220.

Higher-rate taxpayers do not benefit, however, because the threshold for the 40 per tax band will be cut from £42,475 to £41,450, almost wiping out the gain for higher earners.

Have your say

Lovely to see that local councilors are claiming an average of £12000 per year expenses each last year while the local population struggle to find a job paying £12k a year. Who do these people think they are? Disgraceful.

Posted by Simon on 9 October 2012 at 13:18

Oh come up Mr Stevenson, we are not that gullible. Is this not a typical political proposal - put up a headline grabbing idea when you know or should know that it cannot be funded and will never see the light of day.

Come on Mr Stevenson, show some liberal pluck, show some Robin Hood boldness, propose that it be funded via a mansion tax, anyone who has paid more than say £1m for their property since 2000, should pay a special tax of 1% pa of their purchase price to fund the neediest cases (terms for deferrment until death or disposal for those asset rich, cash poor, special cases).

Do something politically original and surprising! Amaze us!

Posted by Anon on 8 October 2012 at 14:03

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