The Tories should step around the 50p tax trap
James Forsyth 3:04pm
The 50p rate is a political measure not a fiscal one. In government terms it will raise peanuts. It is designed to stoke up Labour’s base and to split the Tories.
Brown will be delighting at the bind it has put the Tories in. If they oppose it, Labour will try and paint them as friends of the rich etc. But if they accept it, they’ll be letting Labour get away with an attack on wealth creation that will leave the country worse off.
On 45p, the Tories have neither endorsed nor rejected the proposal but instead tried to walk around the trap. It is tempting to say they should do the same on 50p. But I actually think there’s a case for the Tories just laughing at this measure and pointing out how deeply cynical and political it is. They should say that it says everything about Brown that with the public finances in free-fall, he’s still obsessed with coming up with petty measures designed to trap his opponents and that their main focus is on stopping Brown’s increase in the tax on jobs. If pressed—as they will be—they should say they will come up with the tax rate on the super-rich that will raise the most revenue.
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Gustavus
April 22nd, 2009 5:02pm Report this commentThat photograph of the Shadow Chancellor is a little OTT. Looks like a poster for a horror film.
Conand
April 22nd, 2009 5:05pm Report this commentJames, I agree with your suggestion. In addition they could also say, 'If the fiscal position is such that we do have to keep 50p we'll have to bring in other measures to make sure businesses stay in this country.'
TrevorsDen
April 22nd, 2009 8:19pm Report this commentLabour have done and are continuing to do lots of things which are leaving the country worse off.
50p is just one of many and being part of a long list it will have to wait patiently in line.
Nick Mason
April 23rd, 2009 12:41am Report this commentJust an observation - there will be an effective rate of 60% between £100k and £113k.
from budget report page 106 5.88, "The personal allowance will be reduced at a rate of £1 for every £2 over £100,000 until completely withdrawn"
How can that be in any way "fair"? Or is it that the 50% headline can hide a lucrative sting on many more?
I think GB's disingenuity speaks for itself, and has done so for some time, but maybe we should broadcast it louder.
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