Don't just blame Brown for the recession
29/06/2009
I have just read your story on the survey showing many older folk ready to switch to Conservative. Surely our age group of all people should remember that the pension link with average incomes was taken away by the Conservative government, starting our decline to the lowest pensions in Europe.
The Thatcher government started the movement to taxing people at a lower and lower income level, including doing away with the old rating system which charged much higher rates on extra large properties than the current highest council tax band. If Income Tax started at the same level as when Thatcher was kicked out by her own 'friends', most people on below average incomes would no longer be paying taxes. If the highest rate of tax was at the same level as when she left power, it would be 60% on the highest end of the income of the richest people. According to the Tory tabloids, those figures would make Thatcher a socialist!
Tabloid writers can be excused because most of them are too young to remember a socialist government. We as OAPs should not fall into that trap.
We remember the 1950s when most people were poor but contented, the 'swinging' sixties and even the early seventies when governments of both parties operated a much fairer taxation system - to the benefit of the vast majority and the detriment of very few. I don't remember hearing the top income people screaming about unfair tax in those days, and the tabloids enjoyed reporting the partying and antics of the sup-rich just as they do now.
That would include: bankers who led their banks and the world into recession, Premiership footballers on £100,000+ per week, many failed executives enjoying huge payouts for helping their companies into difficulties. Taking away the many known legal loopholes from those who can afford expensive accountants to save tax - quite likely at greater expense than the saved tax - would help raise tax to buy our way of of trouble, too. Thousands of hard working people around the country provide excellent service to their employers, customers and clients without getting anywhere near an income level of being expected to pay 60% on the top rate.
For those who got to the highest incomes by making their companies successful, would they really miss losing an extra few thousand a week out of several millions a year? What can they spend their millions on?At the other extreme - where most of us as pensioners are, along with many working hard on minimum wages - even an extra £10 a week would be spent to the benefit of the economy in general.
Thatcher started the rot. Major and Blair continued it, aided and abetted by Brown. The result - from Government published statistics - is that we now have the highest difference in income between top and bottom since Victorian times.
The Lib-Dems say they will raise the starting Income Tax threshold sufficiently to put an extra £14pw in the pockets of below average earners. They say they will raise our pensions. They say they will do it by closing loopholes and - very timidly - mention a 50% top rate of Income Tax.
D. Metson
Colchester