Statement on the 2012 budget: making tax fairer

“With Chancellor George Osborne finalising next week’s budget, the Social Liberal Forum reaffirms the Liberal Democrat commitment to fair taxation and urges the government to consider the political implications of cutting taxes on income for the highest earners.
Of course we welcome moves to further raise the income tax threshold, to tax property more fairly and to prevent the wealthiest from exploiting tax loopholes; these are all progressive policies that wouldn’t be in place without Liberal Democrat influence in government. However, as last week’s Spring Conference made clear, so is the retention of the 50p tax rate on the highest incomes at a time of austerity and economic uncertainty:
Conference resolves that the wealthy and those with the very highest incomes should make the greatest proportionate contribution to the tax measures necessary for the reduction of the structural budget deficit and that the Additional Income Tax Rate of 50% on the top 1% of earners is needed to achieve this.
It is not Lib Dem policy to trade the 50p tax rate away in return for other measures on fair taxation; the 50p rate is an integral part of a fair tax system at a time when being seen to cut taxes for the wealthiest would be politically impossible, the amount raised by the rate is unclear and the so-called replacements are not yet in place.
We therefore urge Lib Dems throughout the party to commit to fair taxation at both ends of the spectrum such that those with the greatest means pay the most and are seen to do so.”
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2 comments on “Statement on the 2012 budget: making tax fairer
  1. F Goodman says:

    Absolutely right.
    The Libdems risk falling into a trap similar to the issue over the pernicious rise in student fees, promises seen to be shattered .
    Mr Clegg speaks of “asking more of the wealthy” yet will be asked to support the 20% cut in the top tax rate.
    The objective is said to be to encourage investment and growth. This might work in some cases, in others the money gained might easily be invested in other countries or spent abroad. The only sure-fire way to benefit the economy would be to tie tax breaks to proved investment in Britain or the creation of sustainable employment.

    In France, Sarkozy (right wing) gave huge tax breaks to the rich a few years back (called the tax shield) with no measurable results on the economy except the expansion of the deficit.
    His friends (rich industialists etc) must have benefited.

    Now, let’s see… which party is at the head of the UK government…. ?

  2. Rebecca Taylor says:

    F Goodman: how is a fall from 50p in the pound to 45p in the pound for income over £150k a “20% fall” in the top tax rate? Surely it’s a 5% fall?
    NB: I don’t particularly like it + had I been the chancellor I’d have left it alone.

    Also, don’t forget that the 50p rate was never a LibDem policy or priority, but increasing the tax free allowance to £10k for people on low to middle incomes was a key manifesto commitment (higher rate tax payers get less of an increase + those earning over £100k get no tax free allowance).

2 Pings/Trackbacks for "Statement on the 2012 budget: making tax fairer"
  1. [...] have to say on the 50p tax rate? Oh wait, someone already asked them. The infamous SLF have released a statement on the matter, and I have to say they’ve got this one right in my [...]

  2. [...] I missed that Social Liberal Forum had released a statement criticising the 50p tax [...]

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