Tuesday 22 June 2010

Et tu Cable?

I could go into great detail about the irresponsibility of the Chancellor, George Osborne, and how unfair his changes to tax and benefits are going to be, but I will leave that to more accomplished commentators. I will comment on what is probably the most unfair part of his budget. There is nothing progressive about raising VAT. VAT is an unfair tax and the higher it goes the more unfair it is. The rise from 17.5% to 20%, announced in today’s budget, will hit the population in direct correlation to their income; the lower the income the higher the impact. A credible tax policy can only ever have fairness as its basis, and fairness is derived from tax payers’ ability to pay; the more wealth/income you have the more tax you should pay. The less wealth/income the less tax you should pay. The rise in VAT goes firmly against this principle. The VAT rise will hit the poor hard whilst the wealthy will hardly notice. Why is it always the poor who suffer, when it’s never their fault?

Watching Vince Cable on the telly tonight it is evident that he is becoming distinctly uncomfortable with his and the LibDem role in the debacle that is the coalition government.

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