Tuesday, January 28, 2014

Thoughts on Labour's 50p tax proposal

"It's brilliant in playing to socialism and tribalism. It's not good economics."

(Digby Jones, former Trade minister in the last Labour government, who also described Ed Ball's policy as "If it creates wealth, kick it.")

Similarly ...

"Labour is planning to hike tax rates, not because is is sensible economics but because they think it is good politics."

(Boris Johnson)

"these higher taxes will have the effect of discouraging business investment in the UK."

This is a quote from a letter which the heads of 24 of Britain’s most successful companies published in The Telegraph this week - you can read the letter itself and an acticle about it here - warning that Ed Miliband’s policy would threaten the recovery and cost jobs. At least one of the signatories has in the past given or lent large sums of money to the Labour party, so any suggestion that the business leaders who have been criticising Labour's policies are all Tories does not stand up.

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