IEA Director General Mark Littlewood discussed the recent commitment made by the Lib Dems to further increase the personal tax allowance to £12,500 if in power in 2015. Mark argues that increasing the personal allowance further is not a good way to cut tax. More effective alternatives include cutting the basic rate of tax and reducing the number of middle income earners paying the higher rate of tax. Mark goes on to suggest that National Insurance contributions that are paid below the personal allowance threshold should also be addressed.
You can listen to the full programme here. Mark's segment begins at 00.14.30.