Thursday, 26 August 2010

Progression & the IFS

Can't believe I agree with Guido Fawkes, but this piece makes sense.

The left defines a “progressive budget” as one that benefits those on lowest incomes most. Since the population decile on the lowest incomes is overwhelmingly composed of those on welfare it means that no tax cutting budget, even if it disproportionately benefits the lowest paid by raising thresholds, can ever be “progressive”. The only way the budget could be progressive would be by raising welfare payments to those who spend their days sitting on the sofa watching daytime TV.