Toms Tips #5 Raise income tax threshold

Seven million could get an average 7% pay rise  

June 12, 2024: I did not think I would say this but there is two policies offered by the Reform UK, the Brexit Party that makes sense. Well, they were both from my book: From Here to Prosperity, a progressive policy agenda for a sustainable economy and greater social justice. Most of the other Reform UK policies are treated in a superficial manner and have the consequences of being bad for society as a whole. Here are the two sensible policies which will contribute to a real difference for millions of families

Lift the Income Tax Start Point to £20,000 Per Year. This frees up to 7 million people from paying income tax and saves every worker almost £1,500 per year. On that basis it would “cost” just £10 billion. This will help many back into work and escape the benefits trap. Basic Tax rate stays at 20%. The higher rate should begin at £70,000 according to Reform UK. 

It makes sense. What is the point of taxing people who have no money, they are never going to break out. Even starting at £20,000 is a bit low as the Real Living Wage (£12ph) equates to £25,000 per year.

Cut Residential Stamp Duty. Reform UK suggest that economic activity and housebuilding would be substantially boosted cutting Stamp Duty to 0% below £750k; 2% from £750k - £1.5m; 4% over £1.5m. This makes sense as Stamp Duty is a pointless and a low revenue tax which stunts growth and mobility.

As I have already indicated Stamp duty in its current form raises about £12m and its complete abolition would benefit over a million households every year

These two policies alone but over £20billion back into the economy making a big difference to millions of people struggling to make ends meet everyday.