Is it morally repugnant to tax very rich at 50%?

Danny Alexander MP addressing a Liberal Democr...

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Treasury chief secretary Danny Alexander told conference this afternoon (Sunday) that “those with the broadest shoulders should bare the greatest burden” when it comes to UK tax policy.

 

He told a packed Lib Dem annual conference in Birmingham that he would hunt down those who do their best to avoid paying their share of tax, and, make them pay for it.

 

Alexander’s fighting comments came as the Deputy Prime minister Nick Clegg, also his boss of the Liberals, told Andy Marr that there maybe compromise over the 50p tax rate being looked at again, provided there was help to lift the poorest people out of tax at the other end of the spectrum.

 

In the coalition agreement, it had been agreed that those earning below £10,000 would be lifted out of tax altogether.

 

But Clegg said there wasn’t an urgency to look at a new coalition agreement right now, rather like a mid term school report when it came to renewing the coalition’s vows.

 

The main focus in the coalition agreement was “fairness.”

 

Clegg said that what he was talking about was the very very rich in society, the 1% who should be bearing the greater burden in the tax system.

 

How to set taxes has been a government headache for decades. The Robin Hood tax as it has become to be known is the easiest option for governments who do not have a clear vision on how to spread the fairness among society.

 

There were reports that the Tories wanted to scrap the 50p tax rate altogether.

 

Tory publisher Iain Dale said that it was morally repugnant to tax 50% of anyone’s earnings – he was responding to a comment made by the Liberal Party chairman Tim Farron, who apparently said it was “morally repugnant” to cut the 50p tax at all.

 

Dale replied: “I think taking more than 50% of anyone's income in tax is morally repugnant.

 

Dale believes that high earners should be taxed at 40%, and believes in flat rate taxes.

 

Labour’s leader Ed Miliband, when contesting the Labour Party leadership last year told a newspaper that the 50p tax rate for high earners should stay. Around 300,000 people apparently pay the 50p top rate of tax.

 

Miliband also called on a bankers tax, as a revenue option. Watch this video below…

 

What do Latest readers think on tax?

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