Posted by: secretperson | July 17, 2008

Lib Dems Will Cut Tax

Well they won’t, because they won’t be elected, but it’ll be their policy.

For a long time the Lib Dems were the party of income tax rises (Labour the party of stealth tax rises!), now Nick Clegg wants them to commit to a lower tax burden and lower public spending. I expect the system to be more re-distributive though, cutting taxes on lower incomes, with possible raises for high earners still a possibility. No plans have been finalised, but the Libs will, I assume, want to remain central as they fight the Tories in the South and Labour up North. Tax cutting positions them to the right, so I’d guess there will be a concession to the left as well.

Can any economists explain to me though, why Clegg thinks the economic downturn means we should have lower taxes, and Cameron says the economic downturn is the reason he can’t promise tax cuts?

Still I have to support this move, there is no doubt the tax burden is too high. Let us hope it puts the pressure on Labour (for two years) and then the Conservatives to follow their lead.

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Responses

  1. It’s got to be a step in the right direction for them.

    If they followed it up by promising a referendum on an English Parliament and on the EU I might even vote for them.

  2. It was the Liberals who helped prevent a referendum on the EU, so I can’t see them backing a vote on an English parliament…

    To be fair, the liberals have been calling for tax rises for high earners, not those on low or middle incomes. They changed this policy last year in favour of “green taxes”…

    No doubt this is all about positioning. In the past, the libdems were mainly competing with Labour – most especially after the Iraq war – now they’re mainly fighting the Tories.


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