Now, Timmy is a neo-liberal, which is pretty much to say "he never met a tax cut he didn't like." So I was curious and rather skeptical about any such likeable tax rise. But bugger my toe if he isn't right:
For each £10,000 of wages public sector workers are getting an extra £2,000 untaxed compensation. Tax (income and the two NIs) would be about 40% of that extra £2,000, £800, or 8% of the original £10,000 in cash wages.
Thus all public sector workers should have to pay an extra 8% of their wages in tax.
Total public sector wages are in the range of £160 billion a year (that might be a little out of date) and this will raise some £13 billion a year.
As I said, a tax that we can all support. The TUC, unions and Labour Party will, of course, quite naturally support taxing those who currently are not paying their full whack on the compensation they get through working and the rest of us, well, we can just all gurgle in pleasure as we see that petard being hoisted high. Oh, and of course, as we see the tax burden on us reduced as the public sector workers pay what they should have been paying all along. But we'll be nice, eh? No asking for the back taxes from the last 20 years.