Economics -
Stealth Taxes 2
Tony
Blair is planning a new wave of stealth taxes,
the Tories warned. The Prime Minister had
suggested in a keynote speech that individuals
would increasingly have to pay for services they
use. He also raised the prospect of specific
charges for transport and pensions. Mr Blair
said, “We need to keep direct taxes low to
incentivise work. But unless we want the result
to be poorer services, we need to address the
balance between what the citizen pays
individually or collectively.” The Tories
seized on the words as meaning Labour plans to
raise billions extra in charges and stealth taxes
to fund hospitals, schools and transport.
Shadow Chancellor Michael Howard said, “This
is the clearest indication yet that Tony Blair
and Gordon Brown intend to put up taxes again.
Voters now face a new wave of charges and stealth
taxes. But no matter how Mr Blair dresses up
these tax hikes they are still tax hikes.”
Mr Blair ruled out increasing income tax in his
address to a London conference of Centre Left
leaders from around the world. The speech was
billed as the launch of Labour’s election
campaign for a third term in office.
But the Tories believe Chancellor Gordon Brown
may look to raise more cash from stamp duty,
capital gains tax, airport duty, road tolls,
council tax and insurance premium tax. Dr Eamonn
Butler, of the free market Adam Smith Institute,
believes Mr Blair is being forced to introduce
charges because voters will not let him raise
direct taxes. He said, “He has bled
taxpayers just as much as he possibly can. The
only other source is for people to pay
independently for what they get. If he introduces
new charges, he should lower taxes. If you are
taxing and charging at the same time, people get
very irritated.”
Mr Blair also warned Labour MPs, militant union
leaders and grassroot activists they must back
public services reforms or risk allowing the
Tories back into power. He said, “However
painful the change, it is worth doing because a
reformed welfare state is the only way to social
justice in the 21st Century. Avoiding necessary
change may be popular in the short-term. But in
the long-term, it provides the ground on which
the right can persuade the public that only it
can bring about the change.” The PM vowed to
push through controversial NHS reforms including
foundation hospitals. Labour’s aim is to
allow patients to have hospital ops anywhere in
Britain.
The
poorest families are paying three times as much
in hidden taxes than the richest. Families with
incomes under £11,604 a year hand more than 30
per cent of their income to the Treasury in
indirect taxes. But for the richest households,
earning more than £31,321 a year, the figure is
just 9.9 per cent. The "stealth taxes"
include council tax, VAT, alcohol and tobacco
duties and levies on fuel and fares. Labour has
increased these to avoid raising income tax. Lib
Dem treasury spokesman Matthew Taylor said,
"Labour's tax system is unfair." A
Treasury spokesman said tax changes since 1997
had meant the incomes of the poorest families had
been boosted.
<<<
Prev
Home
These articles
have been collected from various sources. If you
are the copyright owner of any of them, contact us for
either a credit and link to your site or removal
of the article.
--------------