On and on
I’m probably not about to shut up about this 10p rate of tax thing any time soon. For those who are still interested, the rest of this ramble is below the fold.
Apart from it being a disgusting betrayal of some of the most vulnerable in society*, every aspect of the 10p saga is an object lesson in the poisoning of Labour values, the party’s cowardice and the arrogance, its self-delusion and its attempts to delude the rest of us. And the media’s complicity (if not revelry) in all of that.
If you want a further example, read the transcript of the briefing from the Prime Minister’s Spokesman for 24 April 2008. Go to the section on tax and savour the chicanery, the contradiction, the needless but wilful complexity, and the complete reliance on the fact the media really couldn’t give a shit about the detail as long as there’s a good scrap in prospect.
The ‘underclass drink, fornicate and scrounge’ story has always been easier to sell than ‘low paid workers worse off’ - although some do try otherwise in obscure backwaters. We all know it’s easier to casually loathe than make an effort to empathise. Maybe if I hadn’t seen first hand a few years back just how despicably this country can treat the low paid and those in need of help I wouldn’t give a toss either, but I hope and believe not.
When I studied court reporting in the media law element of my journalism training, I always remembered the part where a journalist is regarded in law as ‘the eyes and ears’ of a public who are entitled to but unable to attend court proceedings. Journalists are supposed to represent us, be a proxy for us.
The waters of the 10p issue are now sufficiently muddy that nobody can see the bottom. Was it incompetence or malice that disturbed the silt? Don’t expect the likes of Nick Robinson or Adam Boulton - our eyes and ears at the BBC and Sky News - or the myriad myrmidons of Murdoch to put their wellies on to try and find out on our behalf. They’re too busy punting down the river on their way to wine and dine another anonymous source.
Presumably the backbenchers who’ve bought into these ‘concessions’ on the 10p rate also thought Ronaldo missing that penalty last night was a triumph for Manchester United. At least the Tories, however repellent they remain, have largely stuck to their principles.
I’ve said it before but I really wonder why Cameron and his crew want power - New Labour are doing it all for them and taking all the insults, bad press and humiliation into the bargain. The Tories shouldn’t overstretch themselves and just continue claiming their expenses and laughing themselves sick.
* Yes, yes, nobody’s going to starve and we’re not dealing with huge sums of money either but if that’s your first thought you’re probably not struggling to pay the gas bill or coppering up for tomorrow’s commute. The principle remains that a Labour Government making poor people poorer - by however much - is perverse.
Posted on April 24th, 2008 at 5:50 pm
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Hear, hear.
This whole climbdown by the Labour rebels in return for a nebulous deal in which only some of the people affected will be compensated and then only for average losses is in my opinion the final collapse of “Old Labour”.
For years now leftist Labour supporters have said that, no matter how bad New Labour is, it’s at least preferable to the Tories because at least New Labour still does something for the poor and/or the working classes. The abolishment of the 10p tax band and subsequent cave in by the rebels shows the bankrupcy of that argument.
“The principle remains that a Labour Government making poor people poorer - by however much - is perverse.”
Indeed, I would also add- by any government, is immoral.
The C4 factcheck is wrong.
Childless sick people (who receive IB), non-employed carers (who must engage in more than 17 hours a week specific caring responsabilities to receive Careres Allowance, any less and you can fuck off) and the disabled (DLA/IB) are not entitled to working tax or child tax credits, yet are still taxed on benefits as if it were income.
Only DLA is discounted as a taxable income out of these benefits, but is becoming as hard to get as hen’s teeth.
Something not widely noted is that the 10% tax band has not been completely abolished - people with small amounts of earned income will still pay just 10% on up to £2,320 of their savings income (and note that amount was increased by 4% from £2,230 in 07-08). See HM Revenue guidance on this (not straightforward).
This shows they realised that some people would lose out, and decided some of them needed a special rule to stop that - while they were happy for the others (eg those just above minimum wage, if childless - anyone earning between £13,000 and £18,000 will lose out, because you get no Working Tax Credit at that level) to pay more tax.
And consider this: the combined marginal rate of NI, income tax and withdrawal of tax credits for someone at minimum wage is 70% - 11%+20%+39%. Yet they tell us that anything more than 41% marginal rate for high earners would remove the ‘incentive to work more’.