In America, the poor are often confronted with a relatively high implicit marginal tax rates, because they lose many benefits as their income rises. The economist Has an article about a similar situation in the UK, which influences the higher middle class that earn more than £ 100,000:
At £ 100,000, removing tax -free reimbursement creates a marginal tax rate of 60% for those who are lucky to have a fat salary. If the reimbursement of national insurance policies and students that are included as a tax are included, a young high flyer can be confronted with a rate of 71%. They are not entirely 1960 levels, when the Beatles moaned about “one for you, 19 for me”, but it’s not far away. . . The conservatives introduced lush free childcare allowances, which are worth tens of thousands. Yet [the upper middle class] are excluded. When all this is composed, A [family] In London with two children younger than five, better off from £ 99.999 than £ 149,000. Tax experts often have to explain that tax rates ensure that there are no gigantic losses when the income exceeds a certain threshold. In England, however, earning one pound can cost more than £ 100,000 thousands of costs.
High implicit marginal tax rates create a discouragement to generate wealth. A graph in the article shows that many taxpayers have been resident at slightly less than £ 100,000, presumably by abandoning working over time when it threatened to push their incomes over the levels where they would lose the lucrative child tax allowance:
Suppose the UK started with a program in which all taxpayers were eligible for the underlying benefit. Should a libertary favor “test” the program, so that those who earn more than £ 100,000 no longer qualify? On the one hand, this would reduce government spending. On the other hand, it would increase the implicit marginal tax rate, making it more difficult to escape from the fall of the middle income.
The US will soon be able to face this dilemma with its social security program. I expect that there will be calls to reduce benefits for people with an income above a certain threshold. But this will act as a burden on saving, so that those who have saved to supplement their social security with private savings on dash. If Americans respond by saving less, this can increase the trade deficit.
When I read about modern British politics, I am constantly surprised by the extent to which the performance to the delivery to Margaret Thatcher has been thrown away by the modern conservative party. The economist Has two other articles that relate to the poor recent performance of the British economy. In one article they discuss how the UK could not benefit from the available opportunities after they had left the EU, such as making their aviation industry more competitive:
The Competition and Markets Authority (CMA), a supervisor, has been a mustard-kiet on such market reform for years; The conservative government of Rishi Sunak seemed enthusiastic. That is not the Labor Government of Sir Keir. New ministers have their own priorities and have concluded that an enormously complicated fight with established interests is not worth the candle.
It is an illustration of how Great Britain has designed the worst of all possible Brexits. Because final rules in Great Britain had been established in the EU legislation, that was a rare thing here: a bona fide Brexit opportunity to shake protectionist rules that Cosset cracks that national champions crack. Singapore-on-Thames would welcome Singapore Airlines. Instead, Great -Britain has lost EU–Market access, which weakened competition on British companies, while it has little precious of the simplification of the regulations that may have promoted it.
Another article Show that the British public has regretted the decision to leave the EU:
One reason why the gap is growing is that Brexit supporters are die:
During that campaign, Labor had a ruthless focus on winning faltering tories. But the Reaper turned out to be just as useful. Between the 2019 and 2024 elections, about as many conservative voters died as a linked from conservative to labor.
The influence of Dead Man is felt in both policy and the polls. The dead are among the strongest supporters of the Brexit. Two -thirds of those who shuffled this mortal coil after 2020 supported leaving the EU.