Monday, March 28, 2011

I'm so pleased...

...that I didn't vote Lib Dem.

Now St Vince of Cable confirms that the coalition government will try and reverse the 50% tax rate on high incomes as soon as they can. All the while confirming that the government's austerian spending cuts must be stuck to.

Why on earth? What exactly is the problem with a 50% tax rate for people in the top 0.1% of the income distribution? Does it bring the tax take down, a la Laffer? No. Doesn't it offend natural justice? Hardly. I just can't figure this one out.

Vince then suggests it would be replaced by a 'mansion tax'. Some chance. Any attempt to levy high taxes on expensive properties will founder the moment the Daily Mail finds an old lady on the state pension in a million pound house. There are undoubtedly many of these in London and the South-East. Taxes on property would be a good idea, but will very obviously never happen. The 50% tax rate is already here, as long as it raises money it should be kept.