Tax cuts for the better off, isn’t that the kind of thing associated with the Conservatives? Blair-era Labour? Not of the present radicalparty leadership, surely. What with their desire to nationalise afternoon tea and issue pig iron production edicts. And yet, in 2016’s tradition of politics taking unexpected turns, that is exactly what’s happened. Has the party been sold down the river?
In his final, catastrophic budget George Osborne announced cuts to disability benefits. These were to pay for more tax cuts for the better off, specifically raising the “middle” range 40% income tax rate threshold from those earning £42,000/year to £50k. A nice, tidy bonus for the better off bedrock of the Tories, but also yet another tax cut for the top rate payers without it immediately looking like one. Readers may recall that raising the basic rate was Osborne’s favoured way of cutting taxes for the better off while pretending to care about putting more cash into pockets of modest depth. The unexpected intervention by Iain Duncan Smith put paid to the disability cuts, but the £4bn tax cut commitment remained. Albeit without a means of plugging the hole in the budget. Continue reading