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Salaries and Taxation

Chapters

  1. Salaries and Taxation
  2. Pensions
  3. Benefits
  4. Health and Care
  5. Education
  6. Housing
  7. Employment
  8. Trades Unions and Labour Laws
  9. Trade and Industry
  10. Transport
  11. Energy
  12. Environment
  13. Agriculture, Fisheries, Food and Rural Life
  14. Crime
  15. Legal System
  16. Immigration and Asylum
  17. Local Government
  18. Devolution and Regional Government
  19. Parliament and Democracy
  20. Media
  21. Freedom of Information and Privacy
  22. Northern Ireland
  23. European Union
  24. Foreign Policy
  25. Defence and Disarmament
  26. Conclusions
 Preamble

Chapters

  1. Salaries and Taxation
  2. Pensions
  3. Benefits
  4. Health and Care
  5. Education
  6. Housing
  7. Employment
  8. Trades Unions and Labour Laws
  9. Trade and Industry
  10. Transport
  11. Energy
  12. Environment
  13. Agriculture, Fisheries, Food and Rural Life
  14. Crime
  15. Legal System
  16. Immigration and Asylum
  17. Local Government
  18. Devolution and Regional Government
  19. Parliament and Democracy
  20. Media
  21. Freedom of Information and Privacy
  22. Northern Ireland
  23. European Union
  24. Foreign Policy
  25. Defence and Disarmament
  26. Conclusions
Under the Tories, inequality had grown at an unprecedented rate. This was partly because wages councils were abolished and the difference in salaries grew very fast, and partly because the rich paid much less tax, e.g. the top rate of income tax fell to 40%, more of our tax came from spending (VAT, excise duty, etc.) and council tax took twice as high a proportion of disposable income from the poor as from the rich. We have since learnt that some rich people were even allowed to pay a fixed sum in tax without having to declare their income.
Labour policy was:
1 To bring in a minimum wage at half male median earnings  
2 To raise the top rate of income tax  
3 To raise more of our tax from income and less from spending  
4 To make council tax fairer  
5 To tackle tax evasion by the rich and business  
6 To tax the windfall profits made when former state utilities were privatised  
7 (Anything on business taxes?)  
In fact under New Labour:
1 The minimum wage was brought in, but at a lower rate and with even less for young people Pledge partially carried out
2 There was a pledge not to raise the top rate of tax. A new higher rate was brought in during the recent recession but only as a short-term measure Left as under the Conservatives
3 Even less of our tax came from income and more from spending Policy shift to right of old Conservatives
4 The council tax system was not changed Left as under the Conservatives
5 The special tax arrangements for the rich continued and Britain resisted an EU savings tax on earnings kept elsewhere in the EU Policy shift to right of old Conservatives
6 The windfall tax was brought in, but some privatised utilities were exempted Pledge carried out
7 Corporation tax was cut repeatedly and capital gains tax from 40% to 10% We need more information on the outcome of this pledge. Can you help?
In addition:
Bullet point For many years the 10p starting rate of income tax gave most help to the poor  
Bullet point Tax credits (see Benefits) also helped the poor  
Bullet point Spending which once came from taxation was taken from the lottery, and so disproportionately from the poor  
Bullet point Tax avoidance by big business cost about £85 billion per year  
Bullet point Overall inequality got even worse under New Labour  
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