Ed promises higher taxes - Way to go Ed!
mungobrush
Posts: 9,332 Forum Member
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http://www.bbc.co.uk/news/uk-scotland-scotland-politics-28041605
In a speech in Edinburgh, Ed is promising to "change Britain" by raising taxes
That's just the sort of medicine we need Ed, after climbing out of a recession inherited from your predecessor.
That should suck the voters in
Well done Ed.
In a speech in Edinburgh, Ed is promising to "change Britain" by raising taxes
That's just the sort of medicine we need Ed, after climbing out of a recession inherited from your predecessor.
That should suck the voters in
Well done Ed.
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Comments
Over the last 44 years Britain has balanced its books just 7 times, since the mid 1980s public spending under both Tory and Labour Government's has averaged 40% of GDP yet tax income has averaged 37% of GDP. Ed is being honest, if you want the public services, roads etc, you have to pay for them. I thought we were all agreed borrowing the money, as we have been for 44 years isn't an option anymore.
"Changing our economy, to make it more equal. Changing our society, to make it more fair. And changing our politics: to reform the British state so it works for people in every part of our country."
"'Progressive' tax
The Labour leader's speech will promise a real-terms increase in the minimum wage, a ban on "exploitative zero hours contracts", and a "progressive" tax system with a higher top rate of income tax."
But that isn't what Miliband said.
Borrowing the money certainly can't continue but that doesn't mean the consensus is spending remains what it is and taxes go up.
but to be fair to Ed at least he seems to have registered that the days of borrowing to support high spending are over - if he is saying that he will bring in higher taxes to support increased Public Spending then at least he is giving the electorate a decent choice.
After all how many times do we hear on this forum that the UK should be more like Scandinavia - perhaps there is a real demand for VAT to increase to 25%?
Government borrowing is a necessary part of the money supply. With so much being taken out of the economy by banks, foreign owned business and imports, we haven't got the export levels to sustain the money in the system. That means either government borrows or individuals/business borrows. As it turns out, it's a bit of all of them. Running a country is nothing like running a household budget.
When you say "you" what you really mean is "other people will have to pay for them".
In a nutshell - what the Unions are telling him to do.
The higher rate of tax will bring in less revenue - it's not a fiscal policy, it's a social one.
(because they have actually convinced some that the global recession was caused by the Labour party and people with a 'spare' bedroom)
as well as "no pain no gain, tough love" and my personal favourite "we are all in it together" While at the same time giving their wealthy chums a massive income boost,
Then the very second someone like Ed comes along with a proposal that would actually get us close to being "all in it together" a proposal to spread the pain just a little more evenly so that the better off get a hint of what the rest of us have had over the past 5 years, they immediately go into outrage mode, how DARE they propose that I be affected when there are still poor people to punish? I mean, some of them have 2 toilets there must be room for the invention of and then the removal of 'the spare bog subsidy'
I have no problem with a small percentage income tax increase for everyone in the country, say 5%? after all, aren't we "ALL in it together"?
When people say that it's referring to the fact they are less unequal and as a result have fewer of the health and social problems that afflict the UK after 30+ years of neoliberal policies.
There's demand for taxing the wealthy to alleviate poverty and provide opportunities that will be good for younger generations especially. A sensible Land Value Tax like they have in Denmark would be very good indeed for the UK. Any truly progressive tax would be a step in the right direction.
Perhaps the reason they are less unequal and have fewer health and social problems is partly down to their taxation policies. If the UK brought in 25% VAT and scrapped inheritance tax and increased income tax across the board we may see similar results.
Perhaps this is what Ed is planning?
Tax is a percentage, the more you earn, the more you pay. So its already progressive.
What you are asking for is not progressive tax but punitive tax.
There are not enough cash rich people in the UK to sustain any realistic improvements in tax take, there are only 20,000 UK tax payers earning over £1m pa.
You will get orders of magnitude more tax from raising the base rate by 1% than raising the top rate by 5%. So if you want cover spending with tax, lower rate earners are going to have to pay more towards it.
Anything 'across the board' won't help and it wouldn't be progressive. It's those whose private fortunes keep on multiplying we've got to tax more if we want to put stoppers on rising Inequality.
But everyone, not just the 'rich', pay more in tax in Nordic countries - as has already been pointed out, you cannot get significant amounts of increased revenue to support higher Public Spending simply by taxing the 'rich'.
Higher taxes for everyone has worked in Scandinavia as you mention, so why wouldnt they work here?
Oh right - progressive tax = punative tax for cheerleaders of poverty. I'll remember that one.
What really needs to happen is reducing taxes on labour and increasing taxes on capital. Income makes up a tiny fraction of the hoardes of wealth accumulated by the super rich as they dream of having dinner with fat cats and sprinkling a few crumbs under the table.
I have spent a lot of time in Sweden. The public services are indeed excellent but the taxes on average workers are eye-watering. Plus VAT at 25% and much higher duties on things such as alcohol and fuel.
I'd have a lot more respect for Miliband if he was proposing a Scandinavian tax model but he isn't - he just thinks he can deliver his Socialist Utopia by taxing "the rich" more.
Because we're already far more unequal, and in-work poverty is rising in the UK!
Really? here ya go, just for you,
Source,
http://www.labourleft.co.uk/100-labour-party-policies-each-point-evidenced-to-orginal-report/
There are 100 Labour party policies in that link, and all of them have further links to back them up and to provide more detail,
Now then, the Tories proposals are?.......... oh yeah cut public spending and more attacks on the welfare system including forcing people off the dole and into working for 'free' for their chums,
As well as a system of deliberately 'setting up' people on the dole in order to be able to sanction them as a way of exaggerating the drop in the unemployment figures,
and quite possibly the extending of the 'spare' bedroom fine to include the 'spare' any room in the house that we decide you no longer 'need' fine,
But surely the point is that by having very high taxation rates for everything you can afford extremely generous welfare spending that mitigates unequality and poverty.
I remember when people used to say they would love to be paying more taxes because it would mean they were earning a hell of a lot of money.
I think the Government through the media have influenced the perspectives of tax payers towards people who claim benefit whether they are unemployed or working.
Who is going to be hit with all this tax?
The poor? The working poor are already struggling so more tax would just add more stress to their lives.
The rich? They will avoid it, and rightly so. I would do the same.
The middle? Massive vote loser there.
Progressive taxation. Aren't you in favour of that?
Tax avoidance is the problem. Perhaps you're in favour of closing loopholes that enable people to avoid tax?