Mr Miliband is now promising that ‘the squeezed middle’ classes lot would somehow improve under Labour, by government dictate in 2015 no less, yet based on their recent record, their hypocrisy is actually laughable.
When Labour left office in 1979, having left the lower rates of income tax around 32% and the upper as high as 83% (with the tax on investment income 98%), Labour promised wary voters prior to the 1997 election, income tax would NOT go up – but failed to mention how taxes on middle class wealth WOULD go up.
In 1997 our Private Pensions were the best funded in Europe, so Brown raided them by taking away tax relief, at a stroke to take well over £100 bil away, over years, on an amortised basis, future pension payments. This was also a very large nail in the coffin of Private Sector Final Salary pensions, as it put company scheme costs up – as well as putting up the cost to taxpayers of funding Public Sector Final Salary schemes – so all designed to hit the middle classes most.
In 1997 if you bought a home, the Stamp Tax was a flat rate of 1%, but under Labour is was graduated upwards with a top rate for whatever priced property in the ££millions above – hence average sized families had to pay the government many ££thousands for the privilege of moving – effectively designed to affect the middle classes most.
In Council Tax charges, the larger the family home you bought, the more tax you paid per month, so who suffered the most when Council taxes went up over 110% over 13-years, if NOT the middle classes?
And what was Prescott’s plan to increase Council Tax (never implemented as their parliamentary majority shrank) on home improvements and nice views all about, monitored by the likes of Rightmove’s data base, if not a tax on middle class aspirations?
In wages, in ‘real’ terms, the middle class wages stagnated, as Brown used ‘fiscal drag’ e.g. not increasing allowances with inflation, to ensure they paid the top 40% faster, which included many front line public sector workers and their overtime pay, not obviously considered ‘middle class’.
With the selling of 40% of our gold under $300 an ounce (and went over $1,900 an ounce), that no government before them had done, even in economic crisis times, NONE of these measures were mentioned in their 1997 Manifesto.
At least in their 2010 manifesto they promised more tax rises than cuts compared to others, they just didn’t itemise them, how 1997 was that? Mr Miliband therefore needs to tell the people how he can NOW protect the middle classes and also how he will fund it e.g. who gets stuffed.
If companies think Labour will expand their rhetoric of controlling prices and profits, to loading the tax burden on them, like the 50% Corporate Tax on ANY profits back in 1979, it will kill our investment, job creation and the economic recovery, stone dead.
Please or to access all these features
Please
or
to access all these features
Politics
‘Middle Class’ or just aspiring? Mr Miliband has a u-turn for you.
6 replies
Isitmebut · 16/01/2014 13:51
OP posts:
Please create an account
To comment on this thread you need to create a Mumsnet account.