Has it ever occurred to anyone that the tax free allowance and progressive introduction of higher rates is actually more of a subsidy to business than a generally good thing for low earners?

I’m not arguing for or against, just pondering the point.

If you think about it, it makes a lower cost workforce available whilst offsetting the tax burden on to people on average and above average wages, i.e. office worker on 25k subsidises McDonalds by effectively paying the tax bill for one of their low earners.

I wonder if there was a flat rate starting at £0, would we see a natural rising of wages or would it all end badly. Maybe it would be combined with a higher minimum wage?

Personally I don’t know what the answer to it all is (I have ideas, but not answers), we need a system where people are rewarded for their achievements, but we also need people who work hard but might not be skilled/educated to be able to achieve a comfortable standard of living without a mountain of debt and living in some squalid housing estate.

I’m painfully aware that we have a global economy and have to remain competitive…