6 thoughts on “Corbyn’s wage cap is the politics of envy and spite”

  1. Posted 10/01/2017 at 14:11 | Permalink

    great blog – nail on head.

  2. Posted 10/01/2017 at 16:42 | Permalink

    Clearly and succinctly explained!

  3. Posted 10/01/2017 at 17:20 | Permalink

    “If footballers’ salaries were, as Corbyn suggests, capped slightly above £137,000 – the Rooneys and Pogbas would face a choice between earning £150,000 in Britain, versus tens of millions in Europe, the US, Latin America or the Middle East.”

    Quite right, of course. However, you don’t explore fully what this would mean. It would mean the decline of the premier league relative to leagues in other countries. Less money then would come into the country for TV rights. etc.. Because this money pays for footballers high salaries, top quality training facilities, etc. then the tax revenue from these things would decline (when a footballer is paid £5m p.a., over £2m ends up in the Treasury). This collapsing tax revenue would mean more of the ‘austerity’ that Corby denounces.

  4. Posted 10/01/2017 at 18:19 | Permalink

    Brilliant analysis of the politics of envy which informs most of Corbyn’s pronouncements. A measure like this would simply usher in a return to the 1970s when Chancellor Healey promised to
    Denis Healey promised to “squeeze the rich until the pips squeak” – and did. The top rate of income tax rose to 83 per cent and reached 98 per cent when an investment income surcharge was applied –
    which produced, unsurprisingly, a resulting exodus of brains and talent.

    It was even worse in the 1968 economic crisis when Roy Jenkins imposed a special income tax levy for one year only on “unearned income” or savings and investment returns.
    Someone with investment income of more than £6,000 would pay tax of 20 shillings and nine pence – or £1.04 today – for every £1 of income. If you had investment income above £15,000 you’d pay total taxes of 27 shillings and three pence or £1.36 on every £1. Last one to leave the country, turn the lights out.
    Don’t tell Corbyn, fergawdsake. It might give him ideas!

  5. Posted 10/01/2017 at 21:42 | Permalink

    Bang on! A cogent analysis of the politics of envy which informs most of Corbyn’s pronouncements. A measure like this would simply usher in a return to the 1970s when Chancellor Healey promised to “squeeze the rich until the pips squeak” – and did. The top rate of income tax rose to 83 per cent and reached 98 per cent when an investment income surcharge was applied – which produced, unsurprisingly, an exodus of brains and talent.

  6. Posted 25/04/2017 at 17:04 | Permalink

    Your talking about an idea which is still in its infancy. Previous discussions have suggested that each company could manipulate their top pay bracket as it would be set at 20x their lowest pay bracket. If a company employs thousands of minimum wage staff who go on to claim tax credits then any incentive or legislation to raise those people’s wages is a net increase for government coffers. It is alarming to any person with an interest in fairness that some companies have pay differentials of over 200x between the top and bottom earners.
    We are taught that free market economics causes a trickle down effect but what we are witnessing is the growing division into super rich and struggling poor. This is one of a number of ideas that attempt to combat a problem which is becoming entrenched as the material & education requirements for basic employment increase and the burden on the state from those in substandard employment go on to have no savings for retirement and children who don’t have the education to get a decent job: this vicious cycle needs stopping.

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