Brown scared of Middle England

EVERYONE hates council tax - the inequitable regressive tax which takes a great chunk of money from those struggling on fixed incomes and pensions. But surely, if any section of society could pay even more property taxesm it is those living in million pound homes.

What's an extra couple of grand to these people. In days of old, a Labour government would not have hesitated at upping taxes on the well off. It would have been seen as a proper redistribution of wealth.

But not this Labour government, which is getting itself in a tiz at opinion polls showing that Gordon Brown is a big turnoff for middle England and that he'll bomb at the next election. Desperate to stop this unpopularity slipping even further, Mr Brown has stamped on a report by Sir Michael Lyons - the former chief executive of Birmingham City Council - whose report into funding local authorities will this week propose that council tax be doubled for homes valued at £1m plus.

Council tax will be here to stay, however. And no doubt it will go up when properties are revalued. Remember, tax rates are based on the 1991 valuation of properties. There will be a number of people who are property rich but cash poor who will find themsleves really hammered by this revaluation.

I quite like the Liberal Democrat plan for a local income tax to replace council tax. It will take pensioners out of the system.

It's a pity that the general uselessness of the Lib Dems since they got rid of Charles Kennedy means voters are unlikely to think such a policy is worthy of them switching their votes to the Venerable Ming Campbell.

   

 

posted on 19 March 2007 09:39 by Graham Dines

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