Tax

Great post on taxation by the Devil linked to above. I am not sure I entirely agree about the whole flat tax thing, but one benefit of the scheme he outlines would be the raising of the tax threshhold to £9000 and the taking of 4.5million low earners out of taxation. Our high tax economy is affecting the poorest most, and such a measure is at least a decade overdue. If they do nothing else, the Conservatives must find a way to take more low income people out of tax altogether. It would both cut taxes and contribute to "social justice", and have the Guardian in a bit of a spin, especially if the top rate were raised by a % or two. It does surprise me that a party which prides itself on its working class origins and commitments has done so little to help its people - bar, of course, making them apply for tax credits with tortuous forms, that make the whole process more akin to begging than an entitlement. Meanwhile George Osborne, who does not look or sound much like a chancellor, but more like a smart sixth former, is promising not to cut taxes but little else. Of course he needs to appeal outside of core Tory voters; but he needs to hold onto something the Tories believe in too. He did say "I want lower taxes", but in a way that reminded me of George Bush Snr saying "Read my lips, no new taxes". Still, it's early doors, as football managers say, and Osborne might come up with something interesting before 2009.