LibDems propose tax cuts

[Filuwaúrdjan]

Anyone got a calculator?

[David S]

I was about to say God bless him, but then I read the rest of the plan and realized that it is not a tax cut, just a redistribution. Its another Liberal plan to stick it to someone else.

[Filuwaúrdjan]

Actually there would be very, very little redistribution involved; the idea about extra taxing of the very rich is extremely vague and probably wouldn't result in much extra money for the Treasury; it's a small "p" populist con trick to distract attention away from the fact that this is one of the most rightwing economic policies put forward by a major party over here for quite a while.
O/c the people who would no longer pay income tax wouldn't get much extra money; income below a certain level isn't taxed. You'd gain a few thousand or so a year, but would probably end up being worse off as the LibDems have turned very hostile to the whole benefits and tax-credits system.
IMO the sums don't add up anyway; a 2% income tax cut across the board would result in a huge loss of revenue for the Treasury and neither "green taxes" or a certainly-doomed-attempt to take more money from the super-rich (I would take there claims as far as that goes far more seriously if they took them more seriously themselves) would even come close to bridging the gap.
The result would probably be a very large deficit. Or very large cuts to schools, the NHS, the benefits system ect.

[Bono]

The result would probably be ... very large cuts to schools, the NHS, the benefits system ect.

Which is great!

[Peter]

This is the party that as recently as 97 (and possibly 01) was promising to put a penny on the basic rate? 'kay.

Whilst certainly the green taxes are good from a social engineering standpoint, they aren't really a medium/long term money getter. Scrapping tax credits would be a good thing to do at this point, not because they aren't good in theory (because for the most part they are), its just that they are totally ineffective: They don't reach all of the intended target group, and those that are reached, are not the most in need because those that are, are often too daunted by the paperwork, or don't even realise that they qualify.

Second, the shambles that is this overpayment scandal is just incredulous - How can you give families that you classify as the most needy a bill for a few hundred pounds every year is beyond me.

[Filuwaúrdjan]

This is the party that as recently as 97 (and possibly 01) was promising to put a penny on the basic rate? 'kay.

Yep

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Totally ineffective is unfair; IMO the current setup works better than the previous one (although see below) for a couple of reasons...
The main problem is people don't realising that they qualify (it's possible to say this about a lot of things isn't it?) The ad campaign for tax credits wasn't very sucessful to put it mildly... instead of wasting money on the TV ads, they should have stuck the ads next to the birth/death/etc notices in local rags. Everyone reads those.

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Actually a lot (maybe most? not sure) of the money overpaid hasn't been taken back. I don't know how the various bureaucrats in charge determine who to take money back from and who to leave alone, but then again neither does anyone else

The LibDem proposal for tax credits isn't scrapping them o/c (that would verge on electoral suicide) but to make the system less flexible; which would make life easier for the people administering the system, but would make them less effective.

[Tory]

The Lib Dems are so ridiculous I don't understand why anyone would vote for them. I have ideological disagreements with Labour but they're a sensible party who can govern effectively. The Lib Dems tax policies are insane; they have been for years.

[ATFFL]

The Lib Dems are insane; they have been for years.

Fixed.

[I spent the winter writing songs about getting better]

I probably would've voted for them in the last election, but if Blair's successor is a huge improvemnt (which I've heard is most likely, although I don't know who it likely is), then after this I'd probably be voting Labour.

[Filuwaúrdjan]

Blair's successor will almost certainly be Gordon Brown (the current Chancellor).
The election for Deputy Leader will be much more interesting and a wide range of possible candidates have more-or-less put their names forward already; Alan Johnson, Harriet Harman, Tessa Jowell, Peter Hain and Jack Straw. In addition to that, Hilary Benn's name has been mentioned by some (interestingly enough, his father was just an interpretation of a technicality away from becoming Deputy Leader in the early '80's) and then there's always the prospect of Blunkett trying to make another comeback.
Oh and Alan Milburn o/c.