“Furthermore, a tax-cutting strategy also weakens the UK’s already precarious tax base and totally ignores the underlying drivers of low pay, including the falling share of GDP going to workers (especially those at the lower end of company pay scales).”
That is, of course, a hugely enjoyable argument.
For the falling wages component of the labour share of income is due to rises in employers NI. Tax rises that is. And the falling labour share of income is offset by the rise in VAT in the taxes minus subsidies part. A rise in taxes that is.
So, the falling share of wages in GDP is because of rising taxes in GDP. And you then suggest that cutting taxes is a bad idea because wages are falling as a percentage of GDP?
Most, most amusing.
Do come back to us when you can count to five without taking your mittens off.
They’re ignorant fuckers over at the IPPR aren’t they?