Tuesday, 11 November 2008

Tory Tax Suggestions

It may as well happen sooner rather than later. The Conservative party will form the next Government, so their plans deserve some scrutiny, and I had better get used to nonsense coming from the them in Government and give them a hard time about their piffle. The Tories are proposing an National Insurance rebate for Businesses who "take someone off the unemployment register" of £2,500, funded from the "£8,000 it would have cost to keep them on the register [for a year]."

Well. I suppose as a tax cut it is at least a sensible tax-cut, aiming at the right place. 6/10 plus a gold star for effort, Cameron. But why the stipulation that someone must have been on the register for 3 months? Surely that means that business have an incentive to delay hiring. Surely it creates discrimination against those self-reliant people who only sign on when they've run out of savings?

Why not just make it a "thank you" from the Government for hiring at all? Make it for all newly hired workers to avoid any perverse incentives (and simplifying administration, allowing the firing of a few Local Government, and inland revenue drones).

Of course tax cut is not "paid for" by not spending £8,000 in JSA. It is a choice between not getting £2,500 in tax, and spending £8,000 out of increased borrowing. The way to "pay for" this tax cut is to fire a Diversity outreach co-ordinator on £32,000 per year losing £8,171.71 in Tax and NI revenues, and costing up to £8,000 should the Diversity outreach co-ordinator remain unemployed for one year, but saving the balance of £23,828.29 - a net saving of £7,656.58. One fired Diversity outreach co-ordinator should therefore "pay for" 3 newly hired workers in the private sector.

This saving would be raised if that Diversity outreach co-ordinator spent less than a year on the Rock 'n Roll, and was productively re-deployed in the private sector, where their tax would be a net gain to the exchequer. Of course he, or she (thank you, Brian) would have to learn skills which are actually useful, rather than bully on order to NuLab's PC agenda, and this level of re-skilling might not be possible without re-education camps. Perhaps better to assume they merely rot on the dole, eh?

Tax cuts are pointless unless they come with fired Diversity Outreach Co-Ordinators. A Point I shall continue to bore everyone with in the coming months and years.



3 immoderate opinions:

Umbongo said...

"6/10 plus a gold star for effort"

And I thought "A" levels were being dumbed-down! This was a 1/10 and a good caning for lack of effort. Frankly, both this policy and Cameron's performance on Today were awful and, worse, ineffective. On Today Cameron could have changed tack and attacked Humphrys for spouting the Labour line word-for-word. Instead he got into a dull technical discussion of what would be a non-event even if it's lifted wholesale by the copy-cats at the Treasury.

I'm with you jackart: get rid of the diversity outreach workers and tax will tumble. Unfortunately Cameron is not on your wavelength.

Anonymous said...

Why stop with diversity outreach co-ordinators? Why not remove some of the Central Government staff?

Firing a press officer on £19-32K could pay for a nurse or two at the local hospital.

Replacing the hordes of contractors on £300-550 per day with permanent employees could cut the entire wage bill in half.

Cancelling failed projects would also help: if the Tories annoucned they would can the £50M currently being spent on ID card database preparation (before it has even gone to a vote) and pay for some decent vehicles for the military it would be a start.

Do any of these and tax can drop. Too bad Cameron won't.

Umbongo said...

anon

They can also cancel "London 2012" right now and send Sebastian Coe into exile. That would do something for the country's finances and give a much needed fillip to those of us (a majority I guess) who couldn't care a stuff about the Olympics (2012 or 2008) and are fed up being forced to finance a few athletic obsessives.