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Tuesday
Nov162010

Does Labour Want a Bigger Rate of Income Tax?

Ed Miliband is the new leader of the Labour Party, and we shall all be sitting up with interest to see what his opinions on various matters are. One recent comment made by Peter Hain, who is apparently rather close to Ed Miliband, seems to indicate that higher taxes for people on higher incomes are the only way to go forward.

His comments are speculative and not an indication of what could happen in the future of course. But they are still worth listening to because they could be a clue to how Labour perceives taxes under their new leader.

Miliband wants benefits to be available to everyone regardless of how much it might cost to provide them. He also supports the idea of raising taxes so that those on bigger incomes will always pay more. No doubt those who have the bigger incomes will not be happy, but since Labour is no longer in power perhaps we shouldn’t be too concerned as yet.

As an accountant I am well aware that no one enjoys paying taxes. However most people do also see the logic in doing so, and they are well aware of what could happen if they don’t. A fair level of taxation is what we all want however, and those who work harder to earn more would feel upset if their hard earned wages went to prop up the welfare state.

So it will be interesting to see how things develop from here. In the meantime if you have any questions or concerns over the amount of tax you are paying, contact us at St Matthew for confidential advice.



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