Greens whack top earners with 60% tax

The Greens have announced plans to hit the highest earners with a 60 percent rate of tax, following a slew of tax reform proposals by the Tories and Labour.

Under the scheme those earning more than £150,000 a year would have to cough up 60p on every £1 over that sum, 15p more than the current top tax rate, which stands at 45 percent.

Commenting on the change Natalie Bennett, leader of the Greens, said: “For too long now the economy in this country has worked for those at the top, while failing everyone else.

“The 60p tax will raise money to fund crucial public services, contributing towards the reversal of the failed policy of austerity that is making the poor, the disadvantaged and the young pay for the greed and fraud of the bankers.”

The Greens claim this change will bring in some £2bn, and also “act as a disincentive to companies paying excessively high salaries”.

According to Her Majesty’s Revenue and Customs (HMRC), about one percent of income taxpayers currently pay the top rate of tax, accounting for almost 30 percent of the country’s income tax as of January 2014.

Since last year Labour has mooted plans to bring back the 50 percent rate of tax, originally introduced by Labour prime minister Gordon Brown in April 2010, just before the last general election.

Fiscal liberals have argued such a move would discourage high-earning individuals from moving to Britain, whilst their progressive opponents believe further taxes on high-earnings would more fairly share the burden of running public services.

Bennett said: “Only the Green Party are proposing radical changes which will redistribute wealth within our economy and encourage companies to reduce the gap between their highest- and lowest-earners.”

The Greens’ move follows Labour’s plan to revoke the non-domicile or non-dom tax status, which allows those living in Britain to avoid paying tax on foreign earnings, as well as the Tories’ plan to raise the threshold at which inheritance tax is paid on homes to £1m.

Stalemate endures as election enters final month

Westminster Palaces 101 - The Right Dishonourable

The last few months of electioneering have been disappointing for political hacks. Ahead of the national poll on May 7th the parties endured a steady stalemate. Labour and the Tories tussle over a third of the popular vote apiece, whilst the Liberal Democrats, Greens and Ukip fight over the remnants, their shares fairly constant.

YouGov April 11 General Election poll

As Private Eye has pointed out, this has led to any number of headlines from Fleet Street proclaiming how unpredictable this election is. When translated into seats Labour and the Tories have been on target to collect 280 each, whilst the Lib Dems are reduced to around 25 and the Greens and Ukip pick up a handful between them.

Far north of Westminster the Scottish National Party (SNP) has flourished since it failed to secure the country’s independence in the referendum last September. It is now on course to trounce Labour and the Lib Dems in May throughout Scotland, increasing its MPs from six in 2010 to between 40 and more than 50, depending on who you ask.

Political polls always contain a margin of error that tends not to make it in the papers’ reports (three to four percent per party, according to YouGov’s Peter Kellner), but this time round the uncertainty has dominated coverage. The key question is whether Tories or Labour will have the 326 seats necessary to secure a majority (or 323 in practice, given Sinn Fein’s five MPs refuse to sit in the Commons).

But even if the swing towards the fringes has made this general election more interesting, it has not made it quite as unpredictable as advertised. Most papers have been predicting a hung parliament for some time, and that is almost certainly what we will get. What is harder to charter is how negotiations will pan out between the contenders, but there are some things we can safely say.

First, the SNP will not work with the Tories. As early as August its leader Nicola Sturgeon told a party’s annual conference that: “The SNP will never put the Tories into government.” She has also said she would consider working with Labour, whose leader Ed Miliband has ruled out a coalition but not a looser deal.

Combined with Lib Dem support this gives Miliband a better hand than his Tory counterpart. Whilst incumbent prime minister David Cameron could potentially reform the Condem coalition he might have to rope in support from Northern Ireland to inch a majority, which in turn would be highly unstable.

Because of the Fixed-term Parliaments Act even if no party can govern effectively the parliament will stagger on unless two-thirds of the house vote to dissolve it. Though this is a more democratic method of scheduling elections (previously the prerogative of the prime minister), if more than a third of MPs stand risk losing their seat they are unlikely to vote for early dissolution, even in a zombie parliament.

Just such a parliament is a likely outcome after May. Though the Right Dishonourable predicted this could lead to a constitutional crisis, it is in the British character not to make a fuss. Without the fixed-terms a minority or weak coalition might have governed for a short time before returning to the polls, but with it Westminster could stand impotent for years.

Hey, if it’s good enough for US Congress…

PositionDial tells you which party you agree with – and it’s not tedious


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