Next time you hear someone moaning about too many people paying higher rate income tax and bemoaning the iniquity of fiscal drag remember that income tax isn’t everything.
The sequel to my post yesterday was a discussion (audio here) I had at the Spectator’s beautiful wood-panelled offices in Westminster with Fraser Nelson, the editor, about his belief that any marginal rate of income tax higher than 36 per cent loses the government more money than it raises.
He cheated slightly at the end, when Sebastian Payne [...]
Yes, Fraser Nelson, editor of The Spectator, still peddles this tosh. “How do you get more tax from the rich?” he asks at Coffee House. “Cut their tax rates.”
I was on Iain Dale’s LBC radio programme on Sunday, talking about Labour’s tax policy. I said I was in favour of a mansion tax in principle. Jonathan Portes, of the National Institute for Economic and Social Research, was also on and explained why a land tax (of which a mansion tax would be a progressive form) was economically efficient, so I agreed with him.
David Cameron and George Osborne’s decision to cut the top rate of income tax in two months’ time seems ever more incomprehensible. If they had left the rate at 50p, which for all the difference 45p will make they might as well have done, Ed Miliband would have nothing to go on at Prime Minister’s [...]
It is possible on the basis of the facts to argue that the UK tax and benefit system is progressive; that top earners are paying their “share”; and that there are significant potential disadvantages to wealth and property taxes. But to argue any of these on the basis simply of the share of income tax paid by top earners is at best disingenuous, particularly when the numbers giving the broader picture are so easily available.
I have tried to explain on many occasions* why the Liberal Democrat policy of raising the income tax threshold to £10,000 a year is not the pure egalitarian honey of milk and socialism that Nick Clegg pretends it is.
I have not explained this very well, which is why most of the media-political complex persists in [...]
David Willetts, the Universities Minister, has been musing again* in a Times interview (pay wall) with my former colleague Michael Savage today. He makes the case for the 50p top rate of income tax:
It is very important that people see that when times are tough, we are, as they say, all in it together. That [...]
Ed Balls hasn’t been putting himself around for interviews yet, understandably enough, but in preparation for when that moment comes here are five key questions for anyone who bumps into the shadow chancellor over the next few days.
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