Our esteemed chancellor of the exchequer, Alistair Darling, is going to announce his pre-budget report today and the pundits have it that he’s going to reduce VAT from 17.5% to 15% in an effort to encourage us to spend. He’s got his head in the clouds if he thinks that’s going to get us spending. For a start, shops, in my experience, will not pass on the tax drop to the customers, or at least they will not pass it all on. But that’s the by and by. What’s really getting my goat is the way it’s now become something bad or shameful about seeking to tax the rich. The Tories are saying that Labour wants to tax the rich as if that in itself is reason enough not to vote Labour. Surely it should be the other way around.

Apparently, those of us who earn more than £150,000p.a. will have their tax raised from 40% to 45%. Frankly, I don’t see anything wrong with taxing anything over 100 grand, 55% and anything over 150 grand, 65%.  On top of that, I’d tax anything over 300,000p.a., 80%.

With regard to VAT, I would drop it completely for home fuel and make sure it’s passed on to punters. I’m told that he intends raising the threshold for basic tax which stands to reason really. There is absolutely no reason for anyone who earns less than £25,000 to pay any more for this country’s economy. In fact, they should pay less. It’s the ones who benefited from the boom years who should bear the brunt of the bust years. It’s really that simple. If someone earns more than £150 grand they are not going to miss anything they earn above that. In fact, I’d go as far as saying that anything over 50 grand a year is surplus to requirements and should be liable to huge taxation. But I suppose that’s something to be ashamed of. 🙄