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To: Rt Hon Esther McVey Secretary of State for Work and Pensions.
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N Regarding: Supplementary Income.
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Sunday, 20 May 2018

I am a freelance macroeconomist. I develop new tools and policy to make efficiencies and
provide progress. I have enclosed an article putting forward a new policy suggestion to help
deal with pay disputes. The idea expands upon my work on 'Supplementary Income'.

I recommend an increase or extension of the personal income taxation allowance for

individuals who enter more than one form of occupation. I anticipate the proposal will make
income greater for workers in the 'flexible' labour market and may help increase its size.

This should increase economic output at the same time as maximising incomes for low
earners. The article explains a method of preventing exploitation of the taxation reduction, by
requiring an overall economic gain to offset the loss in taxation. It shouldn't cost anything.

The introduction of the 'R-PAID' would likely be popular on a cross party level and could
remedy many of the currently seen problems in the economy. If quizzed on the topic of pay
disputes you could respond with, changes in 'Supplementary Income' may resolve the issue.

Kind Regards.

Peter James Rhys Morgan.

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Website: morganisteconomics.blogspot.co.uk A R R
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Copyright © Peter James Rhys Morgan 2018. C A
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An Answer to Pay Disputes - Make Sure You 'R - PAID'.

Published at Morganist Economics.

By Peter Morgan.
20:00 14/05/2018.

As a result of the protests in London, regarding pay disputes, I have put together a potential
solution to remedy the issue. The problem arises from the limited income for part time and
gig economy workers, who claim their earnings are not increasing and argue it's stagflation.

Many of the people in the temporary occupation workforce will or could have more than one
job. A taxation advantage could provide an incentive for this part time labour force to enter
additional employment and increase their output to maximise their low or limited incomes.

My suggestion is for an increase in the personal allowance, if more than one occupation is
performed by the individual. This new Rising Personal Allowance on Income for Dual
occupation workers or 'R- PAID', should increase incomes for limited contract workers.

This will increase incomes for the 'flexible' labour force who are not in permanent
employment, leading to an increase in living standards. It will also lead to an increase in
labour supply for the part time work available, from people seeking the taxation efficiencies.

Output should increase and basic services will be provided by the expansion of the 'flexible'
labour market. The current personal allowance for income of £11,850 could rise for people
who have more than one occupation to £12,850. But only if they are in dual occupation.

The loss in taxation revenue is compensated for with the subsequent income from indirect
taxation generated by economic growth from the R-PAID. An increase in output should also
reduce inflation due to more goods and services being made available lowering prices.

To avoid exploitation the R-PAID could only be receivable if income from the secondary
occupation's earnings exceed the overall taxation reduction. For example if the R-PAID
increases the allowance by £1,000, the new job has to earn £1,000 or in excess to receive it.

By putting in the above requirement it will mean the reduction in tax revenue the government
receives has to be matched by an increase in economic growth from the new occupation. This
will make sure the loss of taxation is only seen if there is a compensating economic gain.

The movement in increases of the personal income allowance for 'Supplementary Income' is a
topic I have been developing for a while. I have put together another possible solution to
these problems called the 'SASI', which provides another allowance for a second occupation.

The R-PAID is meant to increase the incomes of workers in the 'flexible' or 'temporary'
labour markets, who have less job security. It is also meant to encourage other workers to join
the part time or gig economies to supplement their income and generate economic growth.

Website: morganisteconomics.blogspot.co.uk
Copyright © Peter James Rhys Morgan 2018.