It didn’t take long for rich Tory donors to start squealing about having to pay more tax on earnings above £150,000, if Labour wins the next election.
The reaction to Labour shadow chancellor Ed Ball’s pledge to reintroduce the 50p rate for top earners, was swift and predictable. Those higher earners claim that it will take away their incentives and business will make a dash abroad.
I wonder why it is that the well-off always argue that they need cash incentives, but then want to deny the same incentives to the low paid?
For the majority prices are rising faster than wages and that is bad news for the low paid, who spend a greater proportion of their cash on the basics. Our members, who are keeping public services going through difficult times, have seen the value of their pay drop by between 14% and 18%. Where’s the incentive for them?
And government figures out today reveal that those high earners have paid a staggering £10 billion less in income tax since the rate was lowered to 45p. Put it another way – the rich have been given a £10 billion hand-out by the state. Shocking at any time, but shameful at a time when we have people queuing at food banks, pay freezes, benefit cuts, high unemployment and not enough homes to go around.
This government’s tired rhetoric just doesn’t wash with the facts. Its economic strategy just isn’t working. Plan B is sorely needed.