So the Lib Dems Nick Clegg is to push for tax cuts in a future, errr, Lib Dem government (no, stop laughing, it’s not polite).
For the umpteenth time, they have announced they’ll cut 4p off the basic rate, now partly paid for by tackling “loopholes” around those who pay themselves in capital and those who pay large pension contributions (the swines). Clegg cited the hedge fund manager paying less tax than his cleaner. This is not quite right, of course: the example touted a year ago (yes, the Lib Dems are just catching up) was of the venture capitalist paying a lower rate of tax than his cleaner – something one of them, unwisely in a country where success is now frowned upon, pointed out publicly. Of course, 10% of a million is still a hell of a lot more than 20% of a few thousand and, following the changes to capital gains tax last year, less likely to occur anyway.
Whatever. It seems the Lib Dems expect these people to voluntarily stay in the UK, bend over and be shafted by a, ahem, Lib Dem government (I’ve told you already, stop laughing).
Now unless I am going to be pleasantly surprised by the scrapping of the tired, unworkable and soon-to-be-discredited (in Scotland, at least) local income tax idea, it seems the Lib Dems are being their usual duplicitous selves. Andrew Marr this morning focussed his questioning on (a) how is Clegg going to find the £20bn savings across government and (b) isn’t he just parroting David Cameron. One line of attack that the media haven’t used yet (as far as I have seen so far) is how the 4p “cut” is more than eliminated by likely local income tax rates.
As I have pointed out before, with my “cabinet member for resources” Bromley hat on, in my borough LIT would equate to around 11p in the pound, so Clegg’s 4p “cut” becomes a 7p increase. Even a favourable re-interpretation of the LIT proposals only produces a local increase equal to the cut in the national rate. If Clegg gets the plans through conference, I would suggest that this LIT trick will probably be what keeps the left-wing majority in the party on board.
LibDems only telling half the story? Business as usual.
