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October 04, 2010

Comments

twitter.com/matt_heath

I think you want a topography of justice. Topologically speaking, hilly is the same as flat (and coffee cups are doughnuts).

Prateekbuch

a better way to claw back child benefit from the rich would have been to keep the benefit universal, but simply to raise the top rate of tax. But a Tory Chancellor wouldn't do this.

Or, keep child benefit (and winter fuel allowance, for that matter) universal, and tax it (them), a la IPPR

Currently reading Amartya Sen's Idea of Justice, some answers to be found there I reckon

Nick Rowe

Chris: if you take standard optimal tax theory, and just add in an assumption that some people have additional expenses (kids, glasses, whatever), you get universality as a feature of the optimal tax system. See Frances Woolley's post today: http://worthwhile.typepad.com/worthwhile_canadian_initi/2010/10/britains-proposed-child-benefit-taxback-is-inefficient.html

I can't think of any second-best argument for clawback. If you can't raise the top rate of tax, why can you raise the top rate of effective tax on people with children?

Sam

"why can you raise the top rate of effective tax on people with children?"

Because people are stupid.

Leigh Caldwell

"why can you raise the top rate of effective tax on people with children?"

Because the effective tax rate on people with children is lower, so you aren't actually raising the top rate. You're just unifying the second highest and highest rates.

Or what Sam said.

Adam Bell

I think justice would be better modelled by a topology more analogous to that of space time, with the self taking the role of mass. In other words, wherever one happens to be one is always sitting in one's own little hollow of injustice.

Nick Rowe

Leigh: the top *marginal* effective tax rate on people with children is the same (under the old system) as people with no children. It's marginal effective rates that have disincentive effects.

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