Having introduced a 10p tax band a few years ago, that many believed did not actually help the poorest (who don't pay tax), Gordon Brown abolished it last year.
MP's in the Labour party, having realised that there are local elections coming next week, recently woke up to the implications of this well publicised abolition and have managed to pressure Brown into saying that he will try to ensure that those negatively impacted by it will be helped.
Needless to say, there will be a world of difference between what Brown is allowing his MPs to believe they think he has promised and what he actually does.
However, we can be assured of one thing, whatever "fix" he actually implements will involve a smorgasbord of complex tax credits, means tests and expensive adverts telling people that if they are affected they should apply for relief.
The net effect will be:
-The costs will outweigh the extra tax collected
-The taxpayer will be worse off
-HMRC will screw it up, as the tax and tax credit system is already far too complex and unwieldy to work effectively and efficiently
As long as Brown is in office, the tax system and HMRC will never be simplified and will never work as they should (ie be a cost effective, fair and efficient mechanism for collecting tax).
Brown doesn't do "simple".
Tax does have to be taxing.
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