Adam Smith Institute's Communications Manager, Kate Andrews, appeared on Sky News to discuss the beneficial services payday lenders provide to low-earners, who cannot secure loans from banks or credit card companies.
Ben Southwood’s comments on Labour’s proposed mansion tax are featured in CityAM
Head of Policy at the Adam Smith Institute, Ben Southwood, was quoted in two CityAM articles, criticizing Labour's proposed mansion tax:
In the wake of Ed Miliband's speech to the Labour party conference last week, the Adam Smith Institute's head of policy Ben Southwood said:Labour’s proposal to tax expensive houses and hypothecate the funds for the NHS is bizarre. Although property value taxes are among the least inefficient taxes, and shifting the burden from costlier taxes like stamp duty land tax, corporation tax and income tax is a good idea, we already have a perfectly good property tax system: council tax.
Read the full article here.
Miliband’s proposals have come under fire from economists and homeowners. Adam Smith Institute’s head of policy Ben Southwood dubbed the measures “bizarre” and former England footballer Sol Campbell said he might join the Conservatives.
Read the full article here.
Sam Bowman's comments on the PM's pledge to lower tax rates feature in the Mail Online
The Adam Smith Institute’s Research Director, Sam Bowman, was quoted in The Mail Online, supporting the Prime Minister’s pledge to cut taxes for low-income workers.
The changes were welcomed by tax campaigners. Sam Bowman, research director of the Adam Smith Institute, said: 'It’s great news that the Prime Minister has pledged to raise the tax-free personal allowance to £12,500. Tax cuts for the poor are one of the best ways to help beat poverty in Britain.'Taking minimum wage workers out of tax is a way of giving workers a ‘Living Wage’ without risking jobs. The difference between the Living Wage and the minimum wage is entirely tax – if we stopped taxing minimum wage workers, they would earn the equivalent to a post-tax Living Wage. '
Mr Bowman said more could still be done, including easing the burden of National Insurance, which works in a different but similar way to income tax and in effect adds 12 per cent to the tax most workers pay.
He said: 'National Insurance contributions are just another form of income tax and are not affected by this threshold rise. Raising that threshold and pegging the new NI and income tax thresholds to the minimum wage rate should be the next government’s top priority to beat the scourge of low pay once and for all.'
A further tax-cutting commitment was given on business tax, with the Prime Minister promising that the UK would 'always have the most competitive corporate taxes in the G20'.
Read the full article here.
Sam Bowman defends the PM's pledge to cut taxes for low-income workers on Sky News
Research Director of the Adam Smith Institute, Sam Bowman, spoke to Sky News about the Prime Minister's pledge to increase the tax-free allowance to £12,500 and implement a lower tax rate for earners making between £42,000 and £50,000.
Sam Bowman is quoted in The Daily Express supporting the PM's pledge to cut taxes for low-income workers
The Adam Smith Institute's Research Director, Sam Bowman, was quoted in The Daily Express, supporting the Prime Minister's pledge to cut taxes for low-income workers.
Plaudits from colleagues and business leaders came after David Cameron's conference performance yesterday.Tory Chief Whip Michael Gove said "absolutely fantastic speech" had laid out the "very clear choice" for next May.
Chancellor George Osborne said it was Mr Cameron's "best speech" to date and that the contrast with Labour rival Ed Miliband's speech was week "wouldn't be starker".
Sam Bowman of the Adam Smith Institute said: "Tax cuts for the poor are one of the best ways to help beat poverty."
Press Release: PM's personal allowance announcement will help beat low pay once and for all
Commenting on the Prime Minister's pledge to raise the tax free allowance from £10,500 to £12,500, Research Director of the Adam Smith Institute, Sam Bowman, said:
It’s great news that the Prime Minister has pledged to raise the tax-free personal allowance to £12,500. Tax cuts for the poor are one of the best ways to help beat poverty in Britain.
Taking minimum wage workers out of tax is a way of giving workers a ‘Living Wage’ without risking jobs. The difference between the Living Wage and the minimum wage is entirely tax – if we stopped taxing minimum wage workers, they would earn the equivalent to a post-tax Living Wage.
This has been a key policy advocated by the Adam Smith Institute for over a decade, and will allow the working poor to keep more of their earnings. And with just a few more steps, we can guarantee a basic standard of living for all workers that boosts the economy too.
National Insurance contributions are just another form of income tax and are not affected by this threshold rise. Raising that threshold and pegging the new NI and income tax thresholds to the minimum wage rate should be the next government’s top priority to beat the scourge of low pay once and for all.
Notes to editors:
For further comments or to arrange an interview, contact Kate Andrews, Communications Manager, at kate@adamsmith.org / 07584 778207.
The Adam Smith Institute is an independent libertarian think tank based in London. It advocates classically liberal public policies to create a richer, freer world.
Sam Bowman's comments on the rise to the National Minimum Wage feature in The Sun
The Adam Smith Institute's Research Director, Sam Bowman, was quoted in The Sun on the risks associated with the rise in the National Minimum Wage:
The Adam Smith Institute warned the rise would threaten jobs. Research director Sam Bowman said the national minimum created unemployment. He said: "There are better, if more politically challenging, ways to fight poverty."Labour has vowed to increase the rate to £8 over the next five years.
Payday lending is here to stay - Sam Bowman writes for the CityAM Forum
The Adam Smith Institute's Research Director, Sam Bowman, argued that payday lending is here to stay in the CityAM Forum debate: 'As Wonga profits slide, will regulatory pressure squeeze payday lenders out of the market?'
Regulation is tightening, and Wonga may be losing ground, but payday lending looks here to stay.Payday lenders perform a useful function: giving people emergency credit with few questions asked in a short space of time.
This comes with sizeable interest: a 30-day loan of £100 from Wonga costs £37.15.
But these loans are so expensive precisely because they are so easy to access. It’s good that such loans exist, but it’s also inevitable that the people who go for them will be the ones with the fewest alternative options, and hence will be the easiest to exploit.
Wonga’s unscrupulous behaviour – sending fake legal threats to customers – is being punished, and a more competitive marketplace might see rivals squeeze the firm out of business altogether.
Just so. But Wonga’s failings should not tarnish the whole industry which, in the end, is answering a very real and important demand.
Read the full debate here.
Press Release: Minimum wage increase risks jobs and does little to help working poor
Commenting on the rise to the National Minimum Wage, Research Director of the Adam Smith Institute, Sam Bowman, said:
Many will welcome the first real terms cash rise to the National Minimum Wage level since 2008, but there is cause for concern – and there are better ways to help the working poor. Most high-quality academic surveys of the minimum wage find that increases lead to more unemployment, and there is some evidence to suggest that the minimum wage slows the creation of new jobs too.Wages are typically set according to worker productivity – if for whatever reason a worker cannot produce more than the new NMW rate of £6.50/hour in value, she will simply not be able to find a job. That risks depriving her of the on-the-job skills that would boost her future productivity, and indeed there is good evidence to suggest that minimum wage laws lead to decreased lifelong earnings among the most economically vulnerable groups in society.
There are better ways of improving the welfare of the working poor that would create jobs, not threaten them. Minimum wage workers still face a high tax bill, mostly thanks to National Insurance, which personal allowance threshold rises do not affect. Indeed the government could give all full time minimum wage workers a ‘living wage’ by taking them out of tax and National Insurance, without risking jobs as the NMW does.
Supply-side liberalizations like planning reform would reduce the cost of living. And direct income transfers, either through a reformed Working Tax Credit system or, better, a fully overhauled welfare system that topped up low-paid workers’ wages automatically, would be an economically sensible way of boosting the incomes of the low paid.
We welcome the fact that the Low Pay Commission has resisted calls by politicians for massive increases in the NMW, which could be truly disastrous. Nevertheless, the NMW is a bad way of improving the welfare of the poor because of the unemployment it creates – there are better, if more politically challenging, ways to fight poverty that do not destroy jobs.
Notes to editors:
For further comments or to arrange an interview, contact Kate Andrews, Communications Manager, at kate@adamsmith.org / 07584 778207.
The Adam Smith Institute is an independent libertarian think tank based in London. It advocates classically liberal public policies to create a richer, freer world.
Ben Southwood's criticism's of Labour's proposed mansion tax are featured in The Guardian and The Observer
The Adam Smith Institute's Head of Policy, Ben Southwood, was quoted in The Guardian and The Observer, criticizing Labour's proposed mansion tax:
The plan, which is opposed by the Tories, was derided last week by the centre-right Adam Smith Institute thinktank. Ben Southwood, the institute's head of policy, said: "It makes no sense to create a whole new property tax system at an arbitrary £2m cut-off point; instead, council tax should be revalued and remodelled along more progressive lines, to reduce the tax burden on people in less expensive properties."
Read the full article here.