Boris Johnson today called the Government's policy to introduce a 50p tax a “double disaster”. This puts pressure on Cameron and Osborne who say it should stay.
Boris Johnson today called the Government’s policy to introduce a 50p tax rate on those earning over £150,000 a “double disaster”. In doing so, he will be lauded by the party’s grassroots but will put pressure on David Cameron and George Osborne to reiterate their position.
Writing for the Telegraph, Johnson says:
“And yet the 50p tax rate that is beginning to drive these people away is a disaster for this country, and it is a double disaster that no one seems willing to talk about it …
“The 50p tax is not far, in its political motive, from Stalin’s assault on the kulaks.”
His intervention will put pressure on the Conservative party leadership to reiterate their position. At their party conference, David Cameron said:
“The progressive thing to do, the responsible thing to do is to get a grip on the debt but in a way that brings the country together instead of driving it apart … [that] is why for now the 50p tax rate will have to stay.”
While George Osborne said:
“I am no fan of high tax rates. We know that in the long run they destroy enterprise. That is why we should not accept Labour’s new 50 per cent tax rate on the highest earners as a permanent feature of the tax system. But we could not even think of abolishing the 50p rate on the rich while at the same time I am asking many of our public sector workers to accept a pay freeze to protect their jobs.”
The policy has been unpopular with right-wing campaigners. Matthew Sinclair of the TaxPayers’ Alliance believes that the 50p rate will “mean fewer entrepreneurs and fewer jobs” – a position picked apart by the Other TaxPayers’ Alliance. A YouGov poll in April for the Fabian Society showed that 52 per cent of voters support the tax. Mr Johnson did not set out how the Government should make up the lost revenue.
UPDATE 11:03
Andrew Sparrow has a good analysis of what this means for Boris Johnson’s longer term plans to be Tory leader.
To reach hundreds of thousands of new readers and to make the biggest impact we can in the next general election, we need to grow our donor base substantially.
That's why in 2024, we are seeking to generate 150 additional regular donors to support Left Foot Forward's work.
We still need another 124 people to donate to hit the target. You can help. Donate today.
13 Responses to “Johnson defies Cameron on 50p tax”
Jonathan Todd
The Johnson/Cameron battles now seem a key dynamic within the Tory Party. More thoughts:
http://jonathantodd.wordpress.com/2009/11/17/cracks-in-tory-discipline/
And:
http://jonathantodd.wordpress.com/2009/11/15/dave-v-boris/
Richard Blogger
Anon E Mouse:
My problem is they tax you your whole life when you’re alive and then when you’re dead?
No they don’t. They tax the estate. You are dead, it is irrelevant to you. As Bill says, the people who inherit the estate have not earned it.
Why not start by getting rid of 100 MP’s?
You want less representation? That’s odd. I actually want more, and more accountable representatives.
What will cutting 100 MPs achieve?
1) @£65k each that will be £6.5m per year. Not much really. (OK, so pension benefits will boost that amount, but we are still not talking much when compared to the £200bn debt).
2) It will mean that boundaries will have to be redrawn. This is not a trivial task. There is a lot of consultation involved when there are boundary changes and cutting 100 MPs will mean that boundaries of *all* constituencies will have to be redrawn to even out the effect. My guess is that it could not be done within one parliament. I would also be interested in estimates of the cost of this. I bet it would eat up all the “savings” from #1.
3) It will make MPs more aloof and disconnected from their constituency (cf MEPs for an example of what I mean). The expenses scandal has shown that the public want their MPs to be more accountable to the public. Making them more aloof is going in the wrong direction.
4) It is blatant gerrymandering from Cameron. ‘Nuff said.
BoJo out on a limb over bankers' bonus | Left Foot Forward
[…] Johnson has previously defied David Cameron on 50p tax. Share | Permalink | Leave a comment Click here to cancel […]