Wednesday, April 13

Tax talk

The spat over tax between Labour and the Tories could be dismissed as boring were it not an issue that affects our pockets.

On this issue, the Tories are in a dilemma. Investment in public services, which inevitably means higher taxes, is popular. Yet the Tories are viscerally opposed to high taxes and a fat state. They have sought to reconcile the dilemma by making vague promises of tax cuts, retrenchment of bureaucracy and investment in ‘frontline services’.

Labour, for its part, has stealthily- and directly in the case of National Insurance- increased taxes and investment in public services. Unlike the Tories- whose instincts are against tax rises- Labour has not departed radically from its historic position as the party of tax and spend. Yet it has been reluctant to crown all this with a big idea, lest it look too much like old Labour.

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