10p Tax Rate
So I have to laugh at the antics of senior figures in the Labour Party including Ed Miliband, Ed Balls and Johann Lamont who are all now firm believers in a 10p tax rate (which helps lower paid workers), but who said nothing whatsoever about its abolition at the time.
The politics of opposition sure is a funny old business.
Curse Of The 10p Tax Rate (15 February 2013)
So the Labour party leadership - in the shape of Ed Miliband and Ed Balls - have finally stuck the knife into their old boss - Gordon Brown.
Because the Labour party finally admitted yesterday - while in opposition it has to be said - that abolishing the 10p tax rate was a really big mistake.
Now I've been saying so for years - as the following post from June 2011 confirms - and so did many Labour backbenchers at the time.
Frank Field - for example - who spoke out and criticised the behaviour of his own party leader and Prime Minister, Gordon Brown.
But Ed Miliband and Ed Balls sat on their hands of course - in fact they did much more than that by voting to support the measure in House of Commons at the time - because they were trusted lieutenants, Government Ministers and part of Gordon Brown's 'inner circle'.
To me though they are both spineless cowards who failed to do the right thing at the time - but who now say they will do the right thing in future.
If only we're all daft enough to vote them back into government.
Aye, right - as they say.
Curse Of The 10p Tax Rate (11 June 2011)
The most damaging revelation to emerge from 'Ballsgate affair' - is that Gordon Brown and the last Labour government knew exactly what they were doing - when they abolished the 10p tax rate.
The Telegraph reports today that government ministers received a 15-page analysis - on the impact of scrapping the 10p income tax band.
The document warned ministers that the move would leave more than 10 million low-income workers, families and pensioners - worse off.
At the time, Gordon Brown denied the policy would have any such impact - and carried on regardless.
As the furore grew inside and outside the Labour party - the Prime Minister was to offer some emergency compensation - for those hit by the tax changes.
A leaked document from the Telegraph's Ed Balls files - shows that long before the policy was announced Treasury officials asked the question:
'Who loses from the abolition of the 10p tax rate?'
The answer was clear and unequivocal - 6 million pensioner households and 5.25 million households receiving working or child tax credits.
So the notion that the government did not understand the real significance of its decision - was clearly a load of baloney.
Whatever else Gordon Brown was - he was a master of detail - and with 10 years experience under his belt as Labour Chancellor - he knew exactly what he was doing.
The truth is he just screwed up - big time - and his premiership never recovered.
Bring Back 10p Tax Rate (23 March 2011)
Today's budget represents another missed opportunity - to do something radical to help the lower paid.
Now perhaps this is not too surprising since the last Labour government - despite lots of fine words - did precious little to get to grips with low pay during its 13 years in office either.
When Labour came to power in 1997, women workers were stuck firmly at the bottom of the pay ladder - and the same was true 13 years later when Labour ran out of steam - and lost the 2010 general election.
During that long period in government lots of public sector employers - including many Labour controlled councils - paid lip service to equal pay and the provisions of the Equal Pay Act 1970.
In 1997 a female cook in a busy school kitchen was paid the equivalent of £3.00 per hour less than a male refuse worker. Ten years on in 2007 the pay gap remained and still exists today - in many areas - affecting other typically female dominated jobs such as carers and classroom assistants.
Despite its moral compass people lost confidence in Labour and one big reason was Gordon Brown's momentous decision to axe the 10p tax rate - which targeted help on many thousands of low paid - often part-time workers - the vast majority of whom are women.
The headline measures in today's budget were much as expected: cuts in fuel costs, support for first-time home buyers - and an increase in personal tax allowances - which will rise by £1,000 this year and again to £8,105 in April 2012.
Now the increase in personal tax allowances will benefit everyone earning up to £115,000 a year - whereas the 10p tax rate was a measure specifically designed to boost the pay of the lowest paid workers.
So while the introduction of higher tax allowances will help offset the ever rising cost of living for everyone in work - some will do much better than others.
Because according to the Financial Services Authority (FSA) there has been a £20 billion windfall to mortgage payers over the past few years - because of our artificially low interest rates.
And the bigger the mortgage the bigger the killing people will have made. Not through any risk taking or hard work - but simply because interest levels dropped like a stone after the banking collapse.
Low paid workers have benefited least from this turn of events because people in low paid jobs often can't afford a mortgage - yet those enjoying above average earnings will have benefited most.
Whichever way you slice the cake, the lower paid groups have lost out big time - compared to what some people like to describe as the 'squeezed middle'.
So I say bring back the 10p tax rate on all earnings up to, say, £17,000 - which would give a big boost to the lower paid to the tune of around £1,000 a year.
Low paid workers will spend the extra cash which can be paid for by redistributing some of the £20 billion windfall that has fallen into the laps of mortgage payers - by sheer good luck and nothing else.
Now perhaps this is not too surprising since the last Labour government - despite lots of fine words - did precious little to get to grips with low pay during its 13 years in office either.
When Labour came to power in 1997, women workers were stuck firmly at the bottom of the pay ladder - and the same was true 13 years later when Labour ran out of steam - and lost the 2010 general election.
During that long period in government lots of public sector employers - including many Labour controlled councils - paid lip service to equal pay and the provisions of the Equal Pay Act 1970.
In 1997 a female cook in a busy school kitchen was paid the equivalent of £3.00 per hour less than a male refuse worker. Ten years on in 2007 the pay gap remained and still exists today - in many areas - affecting other typically female dominated jobs such as carers and classroom assistants.
Despite its moral compass people lost confidence in Labour and one big reason was Gordon Brown's momentous decision to axe the 10p tax rate - which targeted help on many thousands of low paid - often part-time workers - the vast majority of whom are women.
The headline measures in today's budget were much as expected: cuts in fuel costs, support for first-time home buyers - and an increase in personal tax allowances - which will rise by £1,000 this year and again to £8,105 in April 2012.
Now the increase in personal tax allowances will benefit everyone earning up to £115,000 a year - whereas the 10p tax rate was a measure specifically designed to boost the pay of the lowest paid workers.
So while the introduction of higher tax allowances will help offset the ever rising cost of living for everyone in work - some will do much better than others.
Because according to the Financial Services Authority (FSA) there has been a £20 billion windfall to mortgage payers over the past few years - because of our artificially low interest rates.
And the bigger the mortgage the bigger the killing people will have made. Not through any risk taking or hard work - but simply because interest levels dropped like a stone after the banking collapse.
Low paid workers have benefited least from this turn of events because people in low paid jobs often can't afford a mortgage - yet those enjoying above average earnings will have benefited most.
Whichever way you slice the cake, the lower paid groups have lost out big time - compared to what some people like to describe as the 'squeezed middle'.
So I say bring back the 10p tax rate on all earnings up to, say, £17,000 - which would give a big boost to the lower paid to the tune of around £1,000 a year.
Low paid workers will spend the extra cash which can be paid for by redistributing some of the £20 billion windfall that has fallen into the laps of mortgage payers - by sheer good luck and nothing else.
