Scary stuff.... Milliband starts talking about 10p tax bands!

Graham_Devon

Major fiasco this one was for Gordon Brown, and Ed Milliband has decided to go for the same thing.

Milliband promises to re-introduce the 10p tax rate for low earners, and wil pay for it by taxing those with houses worth over £2m.

Good idea? Somewhat amusing that their very first, long awaited policy on the economy is all but a U-Turn

http://www.bbc.co.uk/news/uk-politics-21453444

What they won't say, is that they will reverse the tax cut they keep harking on about, no matter how many times they are asked. It was bought up again today in the speech, stating it was wrong, but again, no statement of their intention on it.

smartn

First question I would ask is would a mansion tax really raise enough to fund this sort of a major change in taxation?

N1AK

smartn wrote: »

First question I would ask is would a mansion tax really raise enough to fund this sort of a major change in taxation?

Depends on the bandings they use. I'd be dubious about any explanation from Labour of how they will fund things as they seem to promise the same money for a half-dozen things normally.

Personally I wish they'd merge employee NI and Income Tax next time they mess about with bandings it'd be a lot simpler and would make actual income tax clearer.

I think the 10% tax rate was actually quite popular and didn't expect them to get rid of it.

robmatic

smartn wrote: »

First question I would ask is would a mansion tax really raise enough to fund this sort of a major change in taxation?

Probably not, and if it's anything like 'taxing bankers' bonuses' they'll spend the proceeds several times and hope we don't notice.

angrypirate

smartn wrote: »

First question I would ask is would a mansion tax really raise enough to fund this sort of a major change in taxation?

Of course not. WHat, you expect labour to have actually costed this thing up?

Anyway, newstatesman reckons that the cut has effectively been reversed with the increase of the tax bands.
http://www.newstatesman.com/economics/2013/02/browns-mistake-has-already-been-reversed

Also, newstatesman also reckons that the mansion tax would only bring in around £1billion so that means the new 10% band would only be £330 (returning £33 to the taxpayer per year). Hardly big news now is it. Pure political spin once again from Labour.

smartn

angrypirate wrote: »

Of course not. WHat, you expect labour to have actually costed this thing up?

Anyway, newstatesman reckons that the cut has effectively been reversed with the increase of the tax bands.
http://www.newstatesman.com/economics/2013/02/browns-mistake-has-already-been-reversed

Also, newstatesman also reckons that the mansion tax would only bring in around £1billion so that means the new 10% band would only be £330 (returning £33 to the taxpayer per year). Hardly big news now is it. Pure political spin once again from Labour.

Actually, I really didn't expect them to have done so, it's all political spin. I don't want to get political but it is rather worrying that the British Public on hearing about 10% tax bands probably think great without any real thought as to how its going to be properly funded. Can't trust any politicians or parties, pretty depressing state of affairs really.

GlynD

The country can't afford to start this uber-socialist carp again.

Wookster

It seems that's the only new policy he's thought of.

Still, no new ideas from Labour on the economy.

GlynD

Wookster wrote: »

It seems that's the only new policy he's thought of.

Still, no new ideas from Labour on the economy.

Because there's nothing else for it at the moment than to bit the bullet and accept austerity. Unless they can come up with something else which generates £700 billion. Can't see it, can you?

Thrugelmir

Wookster wrote: »

It seems that's the only new policy he's thought of.

Still, no new ideas from Labour on the economy.

Appears to be pure spin to feed the media.

Rather as you say something constructive.

Probably on the back of the depressing Eurozone figures today. Difficult to attack the Government when no one else is performing well economically.

purch

When will these numpties realise that the more complicated you make the Tax system, the less tax you collect and the easier you make it to legally reduce the tax you pay

Fatty Lawson promised a far more simple tax system with the last few words of what turned out to be his last budget speech

We are still waiting !!!