With Labour’s announcement of proposals for a mansion tax, the two Eds – Miliband and Balls – seem to have got their inspiration from the Lib Dems. However, as Danny Alexander pointed out in a recent Guardian article:
We should remember what the Labour leader and Ed Balls actually did with the tax system when they controlled it. There was no fairness, just a complex series of loopholes for the rich to avoid tax, and a complex tax credit system that too often trapped the poor in debt.
The 10p income tax rate – which was abolished by Gordon Brown – was not as fair as the Lib Dem proposals which have now been put into action. As Danny Alexander says:
We have cut in half the income tax bill for people working full time on the minimum wage. From April this year, more than 20 million people will have had a £600 tax cut, and more than 2 million will have been lifted out of paying income tax altogether.
Something must be done to ensure that those at the top end of the income scale pay their fair share. Another recent article in the Guardian revealed that the top 1% of earners own 10% of the wealth in this country. Vince Cable continues to champion the idea of a mansion tax for properties worth more than £2million. He says it would help to burst the property price bubble in London and the South East.