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Saturday, April 06, 2013

Coalition getting it right on tax

As 1,110,000 million people in Wales enjoy tax bills that are £600 lower than in 2010 on Monday, Danny Alexander writes in the Telegraph to show that it is the rich who are funding this revolution:

This week for the first time people flying in business and private jets will be paying the same tax on flying that we all pay when we go on our holidays. Labour were happy for the super-rich to fly for free, we are not.

And this week also saw the introduction of a Mansion Tax for tax dodgers. It’s not the full on Mansion Tax that a Lib Dem government would bring in – but it is a step in the right direction. For thirteen years, Labour allowed the very rich to avoid paying their fair share. They knew people were dodging stamp duty on multi-million pound homes and did nothing to stop it. So, from April 1,those people who employed a small army of accountants to get round the stamp duty rules by enveloping property will end up paying up to £140,000 a year.

And of course the top rate of income tax that Labour raised to 50p in the dying days of their administration is being cut to 45p. But even that means the top rate of tax will be higher in each and every year of this coalition government than under any full year of the last Labour government.

This government’s plans mean that the richest will pay more every year of this government than in any year of the last government. Those with the broadest shoulders will pay the most towards cleaning up Labour’s mess.

In fact a millionaire will pay £381,890 more in tax between 2010 and 2015 than s/he would have paid between 2005 and 2010. It is not perfect but it is a more progressive tax system.
I'm sure you'd be the first to agree that getting it right on tax - which includes bankers getting an extra £54K a year - doesn't alleviate the effects of getting it badly wrong on benefits.
Actually, bankers are paying more in tax as well. As for benefits that is a matter of judgement and I have yet to hear Labour say anything it will do different or that it will repeal any measure brought in this month.
As I've pointed out before, but you didn't publish, as a pensioner I'm paying more tax from today. I'm far worse off than I was three years ago, with much higher fuel and food prices due to inflation brought about by the BoE creating £300bn out of thin air. I've also lost out through a cut in interest rates on my savings, which as a pensioner, I have no way of adding to them.

Now, if I was a millionaire, thanks to Cameron and Clegg, I'd be getting a massive tax boost.
I dispute that as a pensioner you are paying more tax unless you are a millionaire pensioner. The higher food prices are linked to the higher fuel prices which are caused by world wide trends for oil and gas and interest rates have been steady at 0.5% for years now. Millionaires as I said in the article are actually paying more tax than they were under Labour.
I should know..i have my tax codings to prove it. The post-65 allowances have been frozen, whilst the basic allowance has been increased. That has disadvantaged pensioners. Its been dubbed the 'granny tax'. I am far from a millionaire being on a modest public service pension. If I was a millionaire I would benefit from the ConDem tax cut that they have from today.
So actually you are not paying more tax. You are paying the same and have an increase in your pension of 2.5% as well. Much better than if Labour had been in power.
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