Posts Tagged ‘50p rate of tax’

If Labour wants to tackle inequality, it’s a land value tax, not the 50p rate that’s needed

29/01/2014, 08:48:37 PM

by Callum Anderson

Anyone who read Oxfam’s report this week, which revealed that the 85 richest people in the world possess the same level of wealth as the poorest half of the global population, would have been  shocked at the magnitude of global inequality. Things aren’t much better here in Britain. Just 189,000 families (roughly 0.6 per cent of the UK population) own two-thirds of the UK’s 60 million acres.

The what-who-how much elements of taxation are ones which have always been fiercely contested by Labour, Conservatives (oh, and Lib Dems) alike. However, as wages stagnate, the gap between rich and poor grow larger by the year, Labour should grab the initiative in this debate. However, instead of pursuing a somewhat one-dimensional tax policy in calling for the return of the 50p tax rate post-2015, the two Eds could, and must, be bolder in laying out a plan that not only yields the most revenue, but also begins to adequately address the inequality that stains our society. But one thing is clear – heavily taxing income is likely not an efficient way of doing this; instead, it is wealth that any future government must concentrate on.

As that great redistributionist, Winston Churchill, put it speaking in the House of Commons in 1909:

“Roads are made, streets are made, services are improved, electric light turns night into day, water is brought from reservoirs a hundred miles off in the mountains – and all the while the landlord sits still. Every one of those improvements is effected by the labour and cost of other people and the taxpayers. To not one of those improvements does the land monopolist, as a land monopolist, contribute, and yet by every one of them the value of his land is enhanced. He renders no service to the community, he contributes nothing to the general welfare, he contributes nothing to the process from which his own enrichment is derived … the unearned increment on the land is reaped by the land monopolist in exact proportion, not to the service, but to the disservice done.”


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Budget preview: The polling that explains why George Osborne is cutting the 50p rate of tax

21/03/2012, 08:10:41 AM

by Atul Hatwal

When George Osborne steps up to the despatch box later he will publicly launch his campaign to be leader of the Conservative party.

David Cameron can breathe easy though. It will not be a throwback to the TB-GBs. Osborne’s real target will likely be shuffling about his city hall office, watching the TV coverage, thinking that he could do it all so much better.

Until now, Boris Johnson has been the darling of the Tory faithful. He shone at last year’s party conference, has repeatedly tweaked the prime minister’s nose on issues like cuts to policing and has been the king over the water to true blue believers who see too much yellow in the government.

In contrast, his rival to succeed David Cameron, has been conducting his campaign in stealth mode. But away from the bright lights of media scrutiny, in the corridors of Westminster, George Osborne has been very active.

If any evidence were needed, just speak to any first term Tory MP: Osborne has been almost indecent in courting the new intake into the parliamentary party.

The chancellor has deployed the full range blandishments: from hand written notes in the pigeon hole to invitations to select dinners, each and every member of the class of 2010 has had unbelievable amounts of personal attention lavished on them.

Team Osborne is confident that two years into government, they have the parliamentary vote locked up. For all of Boris’s grandstanding and media profile, few in the parliamentary party view him as a serious alternative to either David Cameron or George Osborne.

Recently, at a private dinner, one member of the 2010-ers went so far as to suggest that Osborne might even defeat Cameron in a vote amongst his contemporaries.

But that still leaves the blue rinse legions swooning for their blonde mop-topped heir apparent.


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