Saturday, 13 March 2010

Tories Support Tax Cuts - but only if they benefit Higher Earners

Guido Fawkes continues to amuse and amaze with his razor sharp analysis of policies, but through his posts you can tell where the real Tory heart lies - giving tax cuts to those who earn more, rather than trying to help those at the bottom of the income scale. For example, his latest take on The Fabian’s Tim Horton and IPPR’s Howard Reed who have jointly authored a paper for Left Foot Forward on the case for raising tax thresholds on low income earners as put forward by the Lib Dems.

Whilst his analysis here some merit, his reasoning for his critique is that Labour would not support such a policy of lifting the lowest earners out of tax altogether (as the Lib Dems propose) because the result would be that people who earn more would benefit too.

In a time when all parties will be scrutinising tax and spending policies over the next three years to the nth degree I, personally, find it reassuring to know that Labour would choose only to pursue policy alternatives which genuinely help the poorest in society. When there is so little money to go around it would seem sensible that policies are targeted specifically so that they do not lead to increased expenditure in - or reduced income from - other areas.

Political arguments about the welfare state, dependency and whether one should be giving the poorest a hand up or a hand out are irrelevant and a diversion, but as ever the Tory line is clear, whether it is on Inheritance Tax or Income Tax, their policies will always benefit the better off, even when they actually try to argue the opposite!

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