As we run up to the UK Budget, we are hearing some of the horse trading that the Lib-Dem part of the Coalition are trying to push.
The Lib-Dems are suggesting that the 'price' for their support in removing the 50% tax rate, on salaries over £150K, would be the introduction of a so-called Mansion Tax of 1% on houses valued at more than £2 million.
So, they want to replace a tax that raises far less than was projected, with another tax that, while playing to the current public clamour for higher taxes for the rich, will also not likely raise any meaningful levels of income and will impoverish those people, mainly in the South East, who are asset rich but income poor - those that, because of property price inflation have seen the value of their houses increase but who do not necessarily have an income which would support such a house price nor would allow them to pay the tax!
Think about this a little further. These houses have largely been purchased out of taxed income - yes some will have been inherited, but the majority will be the fruits of the labour of their owners.
With their push for this Mansion Tax, the Lib Dems clearly show their Socialist colours.
In short, Tax, Tax, Tax
I may have missed a step in this process, if I did, you can be sure that the Lib Dems and their Socialist fellow-travelers in the Labour Party, will want it taxed. As you would expect, Labour backs the Mansion Tax, so long as the money raised is spent on their pet projects, which are otherwise unaffordable.
I call on true Conservatives to do three things.
Please pass this on to others. Pandering isn't an attractive trait.
The Lib-Dems are suggesting that the 'price' for their support in removing the 50% tax rate, on salaries over £150K, would be the introduction of a so-called Mansion Tax of 1% on houses valued at more than £2 million.
So, they want to replace a tax that raises far less than was projected, with another tax that, while playing to the current public clamour for higher taxes for the rich, will also not likely raise any meaningful levels of income and will impoverish those people, mainly in the South East, who are asset rich but income poor - those that, because of property price inflation have seen the value of their houses increase but who do not necessarily have an income which would support such a house price nor would allow them to pay the tax!
Think about this a little further. These houses have largely been purchased out of taxed income - yes some will have been inherited, but the majority will be the fruits of the labour of their owners.
With their push for this Mansion Tax, the Lib Dems clearly show their Socialist colours.
- Tax people highly, when they are earning.
- Tax people on what they spend their after tax money on
- Tax people on what those possessions that they purchased, with after tax money, when they die.
In short, Tax, Tax, Tax
I may have missed a step in this process, if I did, you can be sure that the Lib Dems and their Socialist fellow-travelers in the Labour Party, will want it taxed. As you would expect, Labour backs the Mansion Tax, so long as the money raised is spent on their pet projects, which are otherwise unaffordable.
I call on true Conservatives to do three things.
- Recognize that the Conservatives are the majority party in the Coalition and act accordingly - don't let the tail, wag the dog!
- Have the courage to remove the 50% rate and live with the political fall-out - tell the truth about how it is simply a fig-leaf to make politicians feel good and really is counter-productive as a revenue raising tool.
- Consider what being a Conservative means and understand that it isn't just about being in power at all costs, it is about implementing Conservative policies while in power!
Please pass this on to others. Pandering isn't an attractive trait.
As you well know Tom, the Conservatives do not have a majority in the House of Commons so have to tread a fine line to keep the Lib Dems happy.
ReplyDeleteIf we let the Scots go their own way, power will shift far more to the right and so the House of Commons will be dominated by the Conservatives again.
So everything just comes down to politics and principles count for nought? The Lib-Dem tail wags the Conservative dog?
ReplyDeleteIf the Conservatives want to pander to the Lib Dems, why not go the whole hog? Put in train a complete re-banding of all properties and then have additional Council Tax bands. It will only cost 300 million!! Oh, and it will kill off the Conservatives for a generation.
Right now, I just don't know what CONSERVATIVES stand for! What is the point of being in power if you can't use it because the likes of Cable and Featherstone and Davey/Huhne dictate their loony-left policies?
The Conservatives have to be about more than just getting re-elected in 2015!
I will follow-up on this in a subsequent post.