The Tory line on tax
James Forsyth 4:34pmThe Tories have just released their Budget briefing. It includes this statement:
Our priority is to avoid Labour's tax rises that affect the many not the few, like the increase in National Insurance which is a tax on everyone who earns over £20,000This echoes Phillip Hammond’s remarks straight after the Budget. But it is important to stress that it does not mean that the Tories are accepting the 50p rate. What it does mean is that the Tories will prioritise—both in political and policy terms—stopping the increase in the tax on jobs. This strikes me as sensible politics and not a surrender.
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David Bouvier
April 22nd, 2009 5:02pm Report this commentThe problem is that the NI hike WILL raise money, whereas cutting the top rate will be next to free (don't listen to me, listen to the IFS).
Once this spin-cycle is done, they need to make clear that spiteful Labour electioneering will hurt the country, and if it indeed raises little extra money, it should be abandoned (at no cost)
Tiberius
April 22nd, 2009 5:14pm Report this commentAgain, I agree with you over this, James, but some people who should know better seem not to understand Cameron's and Osborne's position. Jill Kirby above says they swallowed 45p, when they did no such thing (also I claim first post over the pension tax relief differential between high earners in the public and private sectors).
This is a hot potato (without a heat-resistant surface at hand) for the Tories, but they are dealing with it as well as is possible.
fight50p
April 22nd, 2009 5:24pm Report this commentJames - you might be right but you suggest that they will actually run a contrast campaign on the economy when it's hard to see how they will do that. They have basically accepted all spending commitments, saying they'll spend a little less, and basically all tax commitments. You are interested in US campaigns and you must know that no effective operation seeks to "neutralise" all issues by going along with them. The polls show the public think the Govt is wrong on the economy and incompetent, so the Tories should be confident in smashing them up where they can by being distinctive.
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