"Axe Inheritance Tax" say the Tories. How will you pay for it ? " Um ..."

The Tories are sounding more and more like an opposition party with no hope of power by the week. The argument that the Tories cheaply levy at the Lib Dems door as that the Lib Dems can make pledges, but they will never have to honour them. This is why the Lib Dems have since 1992 always had their manifesto audited to check that the pledges can be paid for. So in that light, how do the Tories plan to cover the costs of axing inheritance tax ?

Although it sounds like a good idea, particularly if you are rich, middle class and live in an expensive home in the South East of England (not trying to hit key demographics there then are you Mr Redwood), there will be a price to pay for the Tories proposals. So where will the axe fall ? On schools, the NHS, Defence ? Of course, the Tories don't say.

Other proposals the Tories have announced include cutting corporation tax (a good thing in my opinion). But again, with no idea give of how they intend to pay for these cuts too. Lets assume the cuts will come from the police and the environment.

These ideas proposed are not bad in themselves, but surely the Tories have to explain at some point how they would pay for them. Anyone can propose tax cuts, indeed the Tories have proposed them again and again, even though the last Tory government actually raised taxes. Without a costed programme the Tories seem more and more like a party desperately throwing ideas around in the vain hope that they will pick up support, but knowing that they have no way of paying for their proposals and, if they were being honest, knowing that they don' t have to cost them because they will not get in to power to do it.

1 comment:

Tristan said...

Well, this is not a manifesto but a policy group announcement. However I can see in this one way in which they intent to raise revenue-

They will cut red tape leading to less money needing to be spent regulating by the government and to increased levels of business activity leading to higher tax income...

Reducing corporation tax means higher tax income from income tax as people's wages and investment returns rise. Plus more business activity leading to more tax intake.