Tax Cutting LibDems
Political cross dressing is getting increasingly complex, Vince Cable is advocating a 16% starting rate for income tax, abolishing tax breaks on capital gains and pensions plus raising "dirty" taxes. They admit they don't really aim to cut taxes, just shift the burden around.
Cutting the tax code, raising the stamp duty and inheritance tax threshold are all good, but clobbering capital gains will discourage enterprise and investment. Retirees are in enough trouble after Gordon's Great Pension Grab without taxing them even more.
Can't help feeling sorry for multi-millionaire Chris Huhne, it came out during the LibDem leadership battle that he was a prolific investor in capital gains tax shelters...
Cutting the tax code, raising the stamp duty and inheritance tax threshold are all good, but clobbering capital gains will discourage enterprise and investment. Retirees are in enough trouble after Gordon's Great Pension Grab without taxing them even more.
Can't help feeling sorry for multi-millionaire Chris Huhne, it came out during the LibDem leadership battle that he was a prolific investor in capital gains tax shelters...
24 comments:
Quite frankly they could promise anything they are not going to win, though they could well end up propping up Labour after the next election.
This is a cynical ploy to portray themselves as tax cutters, whilst actually raising it on the sly.
Gord, where did they get that idea?
Still, hell of a lot more encouraging than anything the Tories have come up with...
Indeed, William W, it is a clear act of homage to 10p band tax cutter, G. Brown.
Now, cast your mind back to the 70s and who is G. Brown's best friend in Scottish politics and contributor to his book on economics? Step forward Glasgow Labour Councillor, V. Cable.
He may have arrived at the LDs via the SDP, but Vince has clearly kept to the old habits of Scottish Labour.
lib dem tax policies brought to you by bruce forsyth
"...higher...lower...higher...lower"
up and down like lembit's cock.
I thought the LibDems were the great exponent of income tax as it was 'progressive'? Now they are hoping to pull off this cheap stunt through a policy of hiking stealth taxes - no wonder so many of them are flocking to the aid of the Brown government!
At least the Liberals have some proper policies.
The last I heard the Tories want to Tax beer, scrap Grammar Schools and Tax Single persons to subsidise Families. nm
Er ... anthoninus ... their proposals make the system more progressive.
And I'm sure the Huhne can cope.
Don't believe the hype - the FibDems are actually proposing an increase in the basic rate - once you add in the Local Income Tax.
Er, but why would you do that Neil? You might as well say, its an extra big cut because they're scrapping council tax. Lowest basic rate since 1916 - beat that Gideon.
As it is a working Family of Six pays the same council tax as a retired couple living nextdoor. At least the Libdems will be getting All those in work to chip in for local services.
Of course an even fairer system would be to bring back the Poll Tax but as Dave ain't a Tory that is Not going to happen.
At least the Libdems will be getting All those in work to chip in for local services.
HORSE! People in work are already forced, not just to "chip in", but to shovel vast amounts of their money into local services via income and council taxes as it is.
This is another example of the unreason and inverse framing we had with the "Marrieds to get £20" guff.
What local income tax means is those who consume the most services pay the least or zero yet still have the vote as to which bunch of hooligans will run their local fief. It is the Rates all over again - in some places it will be the tyranny of the majority.
HORSE! People in work are already forced, not just to "chip in", but to shovel vast amounts of their money into local services via income and council taxes as it is.
Yes - that's why the Lib Dems are cutting Income Tax and scrapping Council Tax. KEEP UP ROGER!
Progressive? What's progressive about abolishing the only real asset tax there is (Council Tax)?
If you live in a big house you pay more. What's progressive about abolishing this again?
As for the 4p cut - which services are going to be cut? It'll probably be mental health services, that's the easy target the Lib Dems normally go for
> At least the Libdems will be getting All those in work to chip in for local services.
Services which they don't use, but their retired next door neighbours probably do make extensive and expensive use of.
One pound of tax extorted, one vote. It's the only way to stop democracy being a raid on the productive by the slothful.
Damn fine ideas from man of the people Vince (Ex Vincent) Cable.
Why bother to save for retirement, spend it, get the state to look after you when you're old. Why bother with enterprise, sponge of the state. Capital gains?, borrow against your assets and spend it on yourself. Be wholly self-centered.....politicians are so join the club.
So much for "liberal" tax plans. Just another bunch of wannabee nannyists and dictators. I'd shoot the whole bloody lot or perhaps we can contract that out to the radical fundamentalists, provided they've got an half-decent chemistry degree.
penfold, one of the biggest income tax cuts promised in decades and you go into auto-whinge mode. This is good news for British politics! We're talking tax cuts! Maybe in a deade or two the Tories will be able to as well!
Tax cuts anon? get a grip, its nothing more than a plan to attack middle england and gobble up more of our hard earned and saved cash.
Vince is a hard left labourite from scotland who'se a Fib-Dem via the SDP. He wouln't know a tax cut if it clocked him in the face.
You think Vince Cable is "hard left"!? He was Chief Economist for Shell!!!
We were already committed to taking everyone who earns less than a full-time minimum wage out of income tax and cutting the basic rate.
Now Gordon has managed to lower the rate without imposing green taxes we Lib dems can go even further and offer the poor - who currently pay the largest proportion of their income in tax of anybody - an even better deal.
It's a true liberal taxation policy; we want to reduce the number of people who need state handouts and let them spend their own money. Makes sense to me.
bhownaggree - Council Tax isn't an asset tax. Its relationship to the actual value of the asset is spurious, and you pay it whether you own the asset or not.
If it was a tax based on owned property assets (or even better, land assets), then I'd be more inclined to keep it...
"If you live in a big house you pay more. What's progressive about abolishing this again?"
Some people who live in big houses have small incomes eg pensioners.
"It's a true liberal taxation policy"
Would be if they weren't abolishing pensions and capital gains reliefs.
Vince Cable is a serious guy who has had a real career before politics. I just wonder why he is in with the Liberals. If there's a hung Parliament I certainly can't see him being happy to keep Gordon Brown in office
Seems to me a serious contribution to the debate from Vince Cable - I don't see the Tories answer to Council Tax conundrum - unfair on the elderly who are / used to be more Tory in their voting intentions - cutting tax rate to 16p makes everything easier to deal with.
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