Responding to the Prime Minister’s speech at Conservative Party Conference and the announcement of two major taxation policies, Jonathan Isaby, Chief Executive of the TaxPayers’ Alliance, said:
“This was a positive speech for taxpayers, with tax cuts for the lowest paid and long-overdue relief for ordinary people being clobbered by the higher rate of tax. Leaving more of people’s money in their own pockets is not just morally right, but the best way to promote economic growth and long-term prosperity. Taxes in Britain have been too high for too long, and the Prime Minister is absolutely right to want to bring them down for hard-pressed working people.
“The next step must be to bring National Insurance thresholds in line with Income Tax, taking those on the lowest pay out of tax altogether.”
Responding to the Chancellor’s speech at Conservative Party Conference, Jonathan Isaby, Chief Executive of the TaxPayers’ Alliance, said:
“The Chancellor is spot on that you can’t tax your way out of a deficit, and that Britain’s astronomical debt must be dealt with. However, much more needs to be done to face up to the huge challenges Britain faces. That means radical tax reform, a war on waste, and another hard look at public spending.”
On the freeze of working age benefits, he continued:
“Freezing benefits is a necessary step towards restoring discipline to our public finances, and ensuring that taxpayers get a fair deal from the welfare system. The benefit system must support those in need and help people into jobs, but can never become a long-term alternative to work.”
On the headline measure to abolish the 55% “death tax,” he continued:
“A tax cut – any tax cut – is always welcome, but piecemeal measures like this don’t represent the radical reform our tax system needs. Britain needs more vision, more ambition, and more boldness from all of its political leadership.”
UKIP today announced a number of new policies, the details of which can be found here. Jonathan Isaby, Chief Executive of the TaxPayers’ Alliance, responded by saying:
“For every good policy announced today, UKIP conjured up a bad one. Despite all the talk of simpler, fairer taxes, many of the proposals announced today will only increase taxes and add further complexity to our already baffling tax system. The frankly bizarre “luxury tax” on handbags and Jimmy Choos would be a nightmare to administer, add hundreds of pages to the tax law books, and would send a very strong anti-aspiration message.
“All parties should promise to abolish the unfair and unjust Inheritance Tax, and the Barnett Formula needs significant reform. But where were the radical proposals to reduce spending? It’s wrong to claim savings from HS2 – which should be scrapped – could pay for anything else, as the money needs to be borrowed anyway. Tax cuts deliver economic growth and raise money in the long-term, but they must be accompanied by clear proposals showing how to bring the deficit down.”
Responding to Labour’s plans to introduce a number of taxes and increase spending on the National Health Service, Jonathan Isaby, Chief Executive of the TaxPayers’ Alliance, said:
“This was sixth form socialism of the most uninspiring kind. It is lazy and dangerous to implement populist measures that won’t raise the money politicians promise. Windfall taxes will hurt pensioners who rely on stable returns for a comfortable retirement, sin taxes hit the poorest hardest, and a Mansion Tax would be a vindictive gesture that will eventually find its way down the property ladder to hit much less expensive homes, too.
“If we want more money for essential services and cancer drugs in the NHS then there must be a serious and sustained war on wasteful spending, alongside a rigorous reassessment of priorities.”
And here’s why.
Politicians can’t be trusted
Property is already heavily over-taxed
It would be an administrative nightmare
It would distort the market
The NHS can improve how it spends taxpayers’ money
Over the last ten years, there has been significant real growth in the resources going into the NHS, most of it funding higher staff pay and increases in headcount. The evidence shows that productivity in the same period has gone down, particularly in hospitals.