Thursday, January 07, 2010

U is for Unfair

A continuing series of spelling out Conservative plans part 9.

Today Danny Alexander MP for Inverness, Nairn, Badenoch and Strathspey and Nick Clegg's chief of staff highlights how unfair David Cameron's marriage tax breaks will be by highlighting a few examples that we are all aware of that shows it inherent unfairness. I've emboldened some of the key phrases within his statement.

"David Cameron didn't just mess up because he blundered in an interview, he messed up because his policy is incoherent and fundamentally unfair.

"It is unfair because it gives tax breaks to married couples where one person can afford to stay at home, but does nothing for couples who both work.

"It is unfair because a family that loses one parent will have their tragedy compounded by an effective tax rise.

"And it is unfair because ultimately it takes money from the pockets of poorer families and gives it to rich ones.

"When the country is mired in recession and public finances are in a dire state, this is a mess that we cannot afford.

"Labour has failed to deliver fairness and the Tories can't be trusted to make the country fairer. Only the Liberal Democrats will build a fairer Britain."

Compare that with the far promises on tax that Nick Clegg has recently be laying out that are Lib Dem policy.

"Our plan would mean that the first £10,000 you earn would be free of income tax. This would be paid for by taxing income and capital at the same rate, phasing out special pension subsidies for highest-rate earners, switching tax from income to pollution and introducing a mansion tax on the value of homes above £2 million."

Everyone would benefit from the lift from just over £6,500 to £10,000 of the tax threshold.

With capital being taxed at the same rate as income tax the rich will not be able to avoid paying what is their due by shifting income into capital to gain the lower rate up to the margin.

Aiming for a greener way of taxing so that as we pollute we pay. We know there are some in our remotest areas who have no option but to drive and we are also looking at ways to be fair to them too.

While Cameron in looking to give the super rich a nice handout through his proposed reforms of the inheritance tax at the top end, we realise that the super rich, who can afford to buy and to run £2m houses, can afford to pay an progressive tax as a result to again help out the poorest who pay proportionately more income in tax, and that would increase under the Tories.

Compare the tax policies for fairness. Shouldn't a progressive Britain (one of Dave's favourite phrases just now) have progressive and fair taxation? If so, then the Lib Dems are the way to go.

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