For over 11 years Labour Governments have refused to increase direct taxes - that's all changed with the current economic crisis we face. Chancellor Alistair Darling has announced an increase to 45 pence in the pound for high earners - and an immediate cut in VAT. As far as the VAT goes, the reduction is a small one which won't make a huge amount of difference to people facing hard economic times this Christmas. There are other caveats which mean the news is not quite so dramatic as it might be. The higher taxes won't be until the next Parliament which means they will only happen if Labour win. What is actually needed is a far more profound redistribution of wealth and a more progressive tax system as outlined here.
However, the fact that the Government is at least prepared to open up a clear divide between Labour and the Tories and use taxation as an election battleground is to be welcomed. Thanks to BBC News for the plug......... which has already tripled the number of hits I normally get . And counting.....http://news.bbc.co.uk/1/hi/uk_politics/7740897.stm
Monday, 24 November 2008
THE PIPS BEGIN TO SQUEAK AGAIN...
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7 comments:
What about the 1p NIC increase - that was direct taxation.
Although I do concede your overall point.
The Daily Mail helpfully reminds us that in 1973 the higher tax rate went up to 83% for earnigs over £24,000 pa.
So there's a bit of juice left yet till we become unelectable.
And that of course was when..... the Tories were in Govt.Shows how far we have to travel , eh.....
Various hints about NI changes of 0.5 % to 1%. Can anyone confirm? To employee and/or employer rates?
Sorry, my typo - I meant 1979 (1973was when Denis Healey said the pips squeak' stuff).
same principle applies toh
I thought the pips squeaking was 1976. will check......
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