Cruddas pushes for middle class tax cut
James Forsyth 4:11pmOver on Next Left, Sunder Katwala reports that at a Fabian society fringe meeting today Jon Cruddas said:
“There is a big case for a middle-class tax cut too – to remove some of the people who have tripped over into the higher rate tax bands, such as teachers who can now be paying the same rate of tax as the big bankers, We could deal with that, and that would work across our electoral coalition too.”
As I blogged the other day, until the Tories start offering tax relief to the middle class they are going to be vulnerable to being outflanked by any new Labour leader on the issue. While the conference pool boost that the Lib Dems have received—they are within four points of Labour in the latest YouGov poll—suggests that the public are now receptive to politicians talking about a smaller state.
The politics of this issue has changed. If the Lib Dems and the man expected to be the candidate of the left in any Labour leadership contest can see the need, and the electoral appeal, of a tax cut for the middle class, then the Tories should be able to too.
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Searcher
September 20th, 2008 4:38pm Report this commentIt's very easy for people like Cruddas and the LibDems to talk about tax cuts. They have the luxuryof knowig that they will never be in Goverment. The problem for the Tories is that they know that in 2010 they will be dealing with an economic disaster.
Ray
September 20th, 2008 5:31pm Report this commentIt's telling that a teacher is Cruddas' idea of someone who is 'middle class'. Presumably, those middle class people who don't work in the state sector are not quite so visible on his radar.
ChrisD
September 20th, 2008 5:37pm Report this commentHmmm, the economy is going to hell and we are up to eyes in debt, both public and personal.
Do I want tax cuts, you bet I would love them, but I don't want them at the expense of the UK being straddled with more debt.
To me that would be as irresponsible as Brown and Bush's stewardship of the US and Uk economies.
We are at this moment watching them both burden the taxpayers with debt due the irresponsible behaviour of both some in the private sector and our governing politicians.
What comes first should be some sort of fiscal stability and a recognition that we have to start paying for that debt, sooner rather than later.
We simple cannot sustain this amount of debt, and we are all going to have to experience the painful correction needed.
Why can't someone be honest about that?
So the Libdems and some in Labour talk about tax cuts in the middle of this financial crisis, and they do so for political reasons rather than a real desire to help the poorer off.
Because at the end of the day they will be paying for that tax cut in other ways just as we will all be paying for the debt.
We need to cut down the waste in the public sector and start paying that debt off, then, if we can afford the tax cuts to kick start the economy great.
But I want to see a bit of honesty from our politicians about why we are all in this mess.
Nick Kaplan
September 20th, 2008 6:13pm Report this commentBy “our electoral coalition” does Cruddas mean all those people who the Labour party pay for votes?
If the Conservatives are to offer middle class tax cuts they cannot do so by raising other taxes like corporation tax (which would be popular but irresponsible) but only by cutting spending. However both Crudass and Clegg can offer tax cuts at the expense of the rich (Clegg already has), this issue could prove very dangerous territory for the Tories, best not to rock the boat...
Martin Alexander
September 20th, 2008 7:29pm Report this commentThese are not tax cuts...They address fiscal drag...Brown has allowed the higher tax band threshold to remain the same for 11 years thereby allowing more and more people to become liable for the higher rate of tax. Very cunning..Very NuLab.
Matthew Blott
September 20th, 2008 7:45pm Report this comment@ Nick Kaplan
Actually I think raising corporation tax is the right thing to do. I do very nicely avoiding PAYE by paying myself in dividends and peanuts in corporation tax. I suppose I am a turkey voting for Christmas but I think most of those in my situation should admit it isn't really fair how they get away with paying their fair share.
James J
September 20th, 2008 9:02pm Report this commentHe must be finding life in Notting Hill a bit expensive. Maybe he should move to his constituency, Dagenham, and put his children in the local schools.
jose garcia
September 21st, 2008 2:12am Report this commentthe only way way to deal with this crysis is to cut public spending by the billions,
if labour is already getting strikes , imagine what will happen under a tory goverment.
we dont have a Thatcher anymore and the tories just dont have the balls for that anyway.
with the budget uk plc has we should each live in a little palace with 24hr room service, instead of being half bankrupted as we are now.
Arthur
September 21st, 2008 11:43am Report this commentWhy do we expect rich people to not only pay more tax, but to pay a higher proportion of their income in tax?
Matthew Blott
September 21st, 2008 3:16pm Report this comment@ Arthur
Something to do with fairness perhaps?
Max Kaye
September 21st, 2008 5:20pm Report this commentMatthew Blott:
"fairness" as in equal distribution of unequal effort?
Arthur
September 22nd, 2008 10:21am Report this commentMatthew Blott,
Yes, fairness is the usual cry, but it all depends on what you see as fair.
If we are all charged a percentage in income tax, the richer person will, by definition, pay more into the tax pot. So, if they are already paying more, why do we think: Ah, I know. Let's make them pay even more because they are so stinking rich.
The answer does not lie in fairness but an attitude that thinks other people's wealth belongs to the state rather than that individual.
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