The middle classes, mansions and Mr Pickles

Last Friday’s Telegraph published a couple of brief pieces drawing on a wide ranging interview with Eric Pickles. The Communities Secretary had a few characteristically pithy observations to make in relation to the ongoing debate over the future of the 50p tax rate and the alternative mooted by the Liberal Democrats of moving to a tax on high value properties.

The Telegraph reports that Mr Pickles:

… is determined to face down Liberal Democrat sensitivities and reduce tax for the middle classes. New taxes on more expensive properties are definitely not on the agenda.

“We as a government have got to understand that middle-class families put a lot into this country and don’t take a lot out,” he says. “It would be a very big mistake to start imposing taxation on the back of changes in property values.”

Mr Pickles also goes further than some of his colleagues by insisting that the 50p higher rate of income tax should be scrapped for ideological reasons.

The Treasury is conducting a study to establish whether the new top rate actually raises much money, but the Liberal Democrats have said it is “cloud cuckoo land” to consider scrapping the tax at the moment. Mr Pickles expresses the views of many Conservatives when he says: “We always said it [the 50p rate] was temporary.

“We’ll get an assessment at the end of this financial year as to how much money we’ve got [from the tax]. But you know I’m a Conservative, I like the idea of lowering taxation.

“I believe you get more tax revenue by lowering taxation because people work harder. I like people to keep more in their pockets for their family.”

Elsewhere in the Telegraph he is reported as saying that:

“… a mansion tax on high-value homes could hit many ordinary middle-class families because of high property prices in some areas.”

“People will suddenly find themselves in a mansion and they hadn’t realised it was a mansion,” he says. “If it is only going to be mansions, the kind of thing you and I would regard as a mansion, it ain’t going to raise very much.”

It is important to put these comments in perspective. [Read more...]

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