More policies
The Conservatives have made an 'Alternative Queen's Speech', which despite its name is a serious policy document, not some Channel Four lecture to the nation on Christmas Day made by a bald man wearing woman's clothing.Furthermore according to the BBC report Oliver Letwin has outlined his proposals for reform of Stamp Duty, an important move given he believes it costs the typical £40,000 pa taxpayer £7,500 a year.
Much like the Tory proposals on personal income tax there is no definite policy but a range of possible policies. I can't find it on the Conservatives' website but the BBC reports it as thus:
They included scrapping the tax for first time buyers spending below £250,000 or exempting all purchases below £120,000 - double the current threshold.
The first measure is quite interesting in that it discriminates for certain types of buyers. This is similar to a suggestion the Sunday Telegraph made yesterday that the Tories should make anyone who earns under £10,000 a year exempt from tax, but those who earn over £10,000 a year should pay tax on earnings below it (with tapering to make it worthwhile earning £10,500 pa).
The advantage of these measures if they increase the income of the lowly paid by quite a lot (in % terms) but don't cost much because they don't give the money to everyone.
The problem though is complexity. You don't need to be an advocate of a 'flat tax' to think that the current taxation system is as complex as needs be, and indeed could be simpler. Making exemptions based on your status, whether a first-time buyer or earning under £10,000, is not the way to go.
Incidentally I don't quite understand the Conservatives' motive in releasing these 'options'. Is there meant to be a public debate, or a party debate, as to their merits?
posted by Matthew @ 11/22/2004 01:34:00 PM
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