Wednesday, 6 January 2010

U-turn killing the 50p income tax for The Rich.

Calling Today Daily Mirror. Tory Tax policies were in tatters yesterday after the party dropped a pledge to axe the 50p higher rate. In an attempt to hit back Labour claims they had a 34 billion black hole in their spending plans, the Tories issued a new tax document.

On the 50p rate, it said:”The Conservative have been very clear that we cannot pledge to reverse this tax increase or any of Labour’s other increases on higher earners.”

But in April 2009 David Cameron told the BBC:”we don’t approve of the high marginal tax rate.” Before adding that getting rid of the 50p rate had to “form its place in the queue of taxes we want to get rid of.”

Labour chiefs said yesterday’s announcement exposed the Tories as two faced.

Treasury Chief Secretary Liam Byrne said:”The Tories are clearly in disarray over promises they made but can’t afford on tax cuts and spending commitments.”

The row comes after David Cameron had to deny abandoning a headline pledge to recognise marriage through the tax system.

In a TV interview, he said he could not promise “upfront “on tax breaks on married couples. But shortly afterwards he issued a statement insisting that the commitment remained through he did not spell out how it would be achieved.