What a concept!!!!: In Britain, they'll increase taxes on the rich to benefit the majority.....

[marmar]

from the Guardian UK:



Darling unveils 45p tax on rich to fund recession package
• VAT cut forms main plank of fiscal stimulus
• Chancellor also warns banks to start lending

Larry Elliott, Patrick Wintour and David Hencke
The Guardian, Monday November 24 2008



Alistair Darling will announce today that income tax for those earning more than £150,000 a year will rise to 45p in the pound during the next parliament to help pay for Labour's £15bn anti-recession emergency package.

Faced with the challenge of reducing state borrowing from an expected £120bn next year, the chancellor will use today's pre-budget report to break New Labour's 15-year taboo on raising income tax on the wealthy. Darling will also unveil a one-year cut in standard-rate VAT from 17.5% to 15%, in the hope consumers bring forward spending and shorten the recession.

The government hopes by targeting the rich, people on low and middle incomes will be reassured they are not to be victims of an aggressive spend now, tax later strategy. It is expected the measure will raise £2bn. Robert Chote, director of the Institute for Fiscal Studies, the UK's leading tax thinktank, said the change would affect only 400,000 high earners. "You are not going to raise an enormous amount of revenue from this," he said. The current top rate of tax - 40p in the pound - hits earnings of more than £39,825 a year, affecting about 4 million people.

Liberal Democrat Treasury spokesman Vince Cable also said the measure will raise "negligible" amounts of revenue. ......(more)

The complete piece is at: http://www.guardian.co.uk/business/2008/nov/24/pre-budget-report-alistair-darling

[Breeze54]

1. Unheard of! They must be crazy!1!

:sarcasm:

Good find! ;)

[cal04]

2. U.K. to unveil major tax-cut stimulus package

http://www.marketwatch.com/news/story/UK-unveil-major-tax-cut/story.aspx?guid=%7B80AD86AE%2D94F9%2D43D9%2DB461%2D6744F996079E%7D

(snip)
In an interview on BBC One's "The Politics Show," U.K. Prime Minister Gordon Brown refused to comment on details of the plan, but said it was crucial for the government to take action now.

"To do nothing ... would be irresponsible," Brown said. "To take action would be to prevent things getting worse."

The cut in the VAT rate is likely to reduce revenues collected by the U.K. Treasury by around 12.5 billion pounds ($18.6 billion) a year, according to the Guardian newspaper.

Brown emphasized that the measures are part of a coordinated efforts by governments around the world, including the other European powers and the U.S., to provide economic stimulus.

(snip)
The plan is also expected to include an extension of a rebate to low-income workers who would have seen their tax bills rise earlier this year due to the abolition of the lowest 10% tax rate. The rebate is reportedly worth around 2.7 billion pounds in annual revenue.

[1776Forever]

3. Jolly good! Hear, Hear!

[deaniac21]

4. Soaking the rich ALLWAYS works!!!!!!!