Azara Blog: Tories produce report about tax

Blog home page | Blog archive

Google   Bookmark and Share

Date published: 2006/10/19

The BBC says:

Shadow chancellor George Osborne has insisted the Conservatives will put economic stability ahead of tax cuts.

The party's Tax Reform Commission has outlined a £21bn package of cuts as part of a simpler, flatter tax system.

Mr Osborne said he would adopt some of the ideas but said other changes - such as higher green taxes - would mean the overall tax take would not be cut.
Recommendations in the report include reducing the basic income tax rate from 22% to 20%, scrapping the 10p starting tax rate and raising tax-free earnings from £5,035 to £7,185.

It also backs replacing inheritance tax, abolishing stamp duty on shares, cutting business taxes and lowering the main corporation tax rate.

It did not consider council tax, VAT, business rates or environmental taxes - favoured by Tory leader David Cameron.

Mr Osborne, at the launch in the City, said: "We will not be promising reduction in taxation at the election. Any changes in taxes will be revenue neutral."

He said environmental taxes on pollution and carbon emissions will be increased to pay for reducing the tax burden on families and workers: "I want to tax the bad, not the good."

If Osborne wants to reduce "the tax burden on families and workers" then who does that leave? (Well, "family" has unfortunately become a code word which means "people who have young children", although most families, by any real definition of family, do not.) This is all the usual hot air. Unfortunately politicians and the media love to play the game that the country can have great services yet nobody has to pay for it. There are more and more non-workers relative to workers, so the latter will inevitably pay more taxes no matter how much any government would like to pretend otherwise. And, as hinted, people who don't breed like rabbits will definitely be hammered by the Tories (as by the other parties).

All material not included from other sources is copyright For further information or questions email: info [at] cambridge2000 [dot] com (replace "[at]" with "@" and "[dot]" with ".").