The public is much more likely to back tax cuts than politicians realise

Lower taxes are good for economic growth. They reward effort, hard work, saving and investment. But there is a pretty big glitch: most people are only too keen to see those who earn more than them clobbered by the taxman, and politicians are thus deeply wary of promoting a supply-side solution to our economic challenges.

Of course, many are happy with the status quo for those on £100k or more but these figures are far less envy-laced that other, less granular polls might suggest. Even more encouragingly, younger people are much less likely to want to hammer those on £100,000. No fewer than 38pc believe that they pay too much, against 15pc who believe that they pay too little.

As the IEA points out, when asked how much of a £1,000 pay rise someone on £42,000 should hand over to HMRC, the average respondent said that the marginal tax should be £158.81. The actual loss is £420 because it is where the 40p tax threshold kicks in.

The public would be highly receptive to supply-side tax cuts, especially for those in the bottom 75pc of earnings. Massively increasing the 40p threshold or, better even, cutting it may not be as scary as some in the Coalition believe (ignoring the revenue effect, of course).

Everybody on the front bench of the Tory party should study the details of this poll carefully.

It’s hardly a perfect picture but it suggests that there are ways that mass pro-growth tax cuts could be sold to the public. Supply-side economic need not be a vote loser, Mr Osborne.

allister.heath@telegraph.co.uk

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