Let’s be clear, earning £80,000 makes you well off. It’s a privilege. It affords things many can’t enjoy. So I am having no truck with the argument that those earning that much aren’t well off. But, those who do so and who are employed (and quite a lot will be) are already paying their taxes. And they are likely to be the ones paying most of any increase. This makes the move poorly targeted in election terms. The country is not seething about the pay of head teachers, hospital consultants, university professors (yes, that’s me) and higher, but still mid-tier, managers. So there is precisely no sympathy gained from targeting them, and some antipathy generated.
The country is instead angry about low corporation tax rates.
And low taxes on returns to wealth.
And tax abuse.
So the offer should be to raise corporation tax.
And to equalise the capital gains tax and income tax rates.
And to make sure that every small company pays its taxes, in full, by ending the abuse of limited liability.
It could be about an additional tax on rents so that they are taxed at the same rate as work when national insurance is included. And that rate could be applied to all investment income and the so-called dividend tax could then be scrapped.
Those taxes would work. And be fair. And popular.
Rare to see it quite so nakedly put, isn’t it? And seems that being on PAYE from Islington Technical College is hurting.