Monday, 22 June 2015

Conservative commitments - 9, 8 fails



Have I mentioned vote-buying yet? This idea is absurd. The Conservatives’ position is ‘It’s your money, you worked hard for it – and you should be able to pass it onto your loved-ones’ (from manifesto). Let’s look at that closely. Whose money is it? Who earned it? The Conservatives have answered that: it’s yours, and you earned it. Did anyone else earn it? It doesn’t look like it. If someone else earned it, why have you got it?
So if no-one else earned it, why is it right and proper for them to get hold of it at all, let alone without any tax? We tax money people get when they genuinely do earn it. Why should money that is unearned be tax-free? We should abolish income tax before we even touch inheritance.
I could go into more detail, about how most people didn’t earn the value of their homes at all. Most people with homes valued between £750,000 and £1m bought when prices were a lot lower and have not earned any of the difference at all; they have merely sat and watched as governments have inflated a price bubble. If the Conservatives only care about money that someone has earned, they shouldn’t be changing inheritance on homes at all.
It’s also worth noting that people whose homes are between £750,000 (twice the current individual threshold) and £1m are actually hugely wealthy. They might not feel it because there’s always a wealthier person out there, and because the economy is so precarious (after 5 years of Conservative coalition) that it feels like it could all vanish fast, but they are much, much richer than most people.
In summary, then, this policy is about ensuring that very rich people get unearned wealth without paying any tax at all. If the Conservatives ever wonder why they’re regarded as the party of the rich, here is one of the best reasons why. They claim that this is about fairness and justice when it’s extraordinarily socially regressive and unjust.
This policy is repeated at 51.

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