I saw parts of Ming's speech yesterday and was particluarly interested in the part about tax policy. I wondered at the time about the 50p rate and whether or not Ming wants to drop it. I concluded that he did but only because of the three principles which he outlined as follows :
First, the tax burden must be lighter for those on lowest incomes.
Second, the tax system must provide incentives to companies and individuals to behave in a way that sustains our environment.
Third, the system must be simple – it must support enterprise and must not stifle it.
To this I would add a fourth " The tax burden should be heavier for those on the highest incomes" To me it is important to be up front about this if we genuinely believe that those who earn the largest amounts in society can and should contribute a little more to the overall tax take.
I would not take exception to dropping the 50p tax rate so long as we retain a method of ensuring that those who can afford a little more pay a little more. There are other ways that such a principle could be implemented as was outlined by Chris Huhne during his campaign where he suggested that we could limit the tax relief on pension contributions for higher earners.
Tag Lib Dems Politics