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George Osborne: ‘New taxes on rich people’ to accompany welfare cuts

8 October 2012

Ahead of his conference speech this morning, George Osborne was on the Today Programme. Much of the interview revolved around whether or not the Chancellor would have to abandon his aim of having the national debt falling as a percentage of GDOP by 2015/16. Osborne batted away these questions, stressing that he was waiting for the numbers from the Office of Budget Responsibility.

Osborne also said that there would be ‘new taxes on rich people’ to accompany the £10 billion of welfare cuts that he wants to see. Osborne stressed that efforts to make the rich pay more were not simply to ‘appease Liberal Democrats’.

One of the dilemmas for the Tories is how much to talk up the economy at this conference. The language they seem to have hit on is that ‘the economy is healing’. Osborne used this phrase in a speech to the Scottish CBI last month and it has been on the lips of Cabinet ministers in Birmingham this week.

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  • Alexander Clackson
  • itdoesntaddup

    So what are these new taxes on the rich going to be? Tax on the fuel of their business jets? 100% purchase tax on cars with a list price over £30,000? A caviar tax?

  • dalai guevara

    What taxes?

    No one earning over £150,000 pays taxes thru’ PAYE. Not Rooney, not Llewelyn-Bowen, not Peter Kay, not me. And taxes on assets are not as high as taxes on income from work. Ergo, there is a continued disadvantage for those who have not inherited, and the Central London housing market is proof of that. Is that what we really need in our society, more inequality?

    • hexton

      “No one earning over £150,000 pays taxes thru’ PAYE. Not Rooney, not Llewelyn-Bowen, not Peter Kay, not me.”

      …. Who pays through PAYE on that sort of money? Notwithstanding your examples, a good many employees do just that. Sorry to have to disabuse you.

      • dalai guevara

        Just under 98,000 people had taxable incomes between £150,000 and £200,000. 138,000 had incomes between £200,000 and £500,000. 26,000 had taxable incomes between £500,000 and £1m.

        Just 13,000 people with taxable incomes over £1m each. (Source: HMRC for 2010-11)

        Andrew Neil now proclaims, that only 6,000 individuals pay ‘millionaires tax’ – so that is a discrepancy of more than 50%. Why? Income in the top tier has not dropped, but continues to rise as we all know. What data have you got that we have not?

        • HooksLaw

          maybe Neil got his figures wrong. the point is only a few people earn 1mil and over and Miliband was lying.

          • dalai guevara

            Wrong figures by the man? hmmm…
            Maybe the discussion about high rate tax is a smoke screen as it generates about 0.001% of what is needed right now. Time for a plan, one cannot stop thinking.

  • Norman Cameron

    I thought Osborne was cleverer than this, the man is the slowest of learners. Look, George, here’s how it’s done:
    ‘Merv, or should that be Sir Merv, how goes it my fine chap?’
    ‘Oh, you know two bottle lunch at the club bit of meditation for the rest of the afternoon, allow the problems of the world to cogitate a bit’
    ‘Yes, well, next month could you see your way to print £60bn rather than £50bn next month? I hear Benedict Brogan has an upcoming article on you in The Telegraph, I hear it could really show you in a positive light, practically saving the British economy.’
    ‘Consider it done old man. Still on for cocktails at 8? The two Ed’s coming as well, best to keep all the relevant parties in the loop’
    ‘See you then,Sir’

  • philip sayers

    more new taxes on the rich in the years to come. yes hes right but it’ll be under a labour govt. quite far seeing really;for him anyway. as for structural debt falling. of course it will be hes decimating the public sector,welfare,grannies,schools,hospitals, and the undeserving poor.

    • james102

      The choice is more equal slices from a smaller cake or unequal
      slices from a bigger cake.

      • philip sayers

        disabled,old, poor should exempt from any kind of cuts. it wasnt as if they caused the crisis. just greedy tory bankers.

        • Harold Angryperson

          …let loose by Gordon “Light Touch” Brown

          • philip sayers

            tory mantra surely. deregulate,no state interference. tories such as you cannot have it both ways,even though you try. also ive not noticed much regulation of banks so far. have you?

            • HooksLaw

              Starting from a bogus premise again.
              It was a tory right at the outset who pointed out that Brown’s new regime of banking regulation would prove to be inadequate.
              The tory mantra is not no interference and total deregulation. the fact that you have to lie shows how weak your argument is.

              • philip sayers

                tory right? is that implying theres a tory left?

            • alexsandr

              a rue tory would deconstruct the large state owned banks and look to have more smaller banks.
              I think they should also encourage peer to peer lending as an alternative to the banks which still fail to lend.

              • philip sayers

                what you mean the banks labour saved (with tory blessing).

        • james102

          Defining ‘poor’ has become difficult as ‘relative’ poverty
          is used.

          Wishful thinking , whether about proportionate outcomes in
          every area of life or the capacity of the state to support
          ‘average’ lifestyles for all its citizens is just that: wishful

          Economists and sociologists look at Lorenz curves and Gini
          coefficients and we are supposed to shut down common sense and agree unaffordable transfers between groups. What we don’t want to discuss is that these have now become transfers between generations. We are committing the taxes of children yet unborn. For the first time children in the USA and Europe
          are likely to be worse off than their parents.

          • philip sayers

            Lorenz curves,Gini coefficients. As del boy would say What a tart!!

            • james102

              A fan of repeat TV shows are you?

        • ToryOAP

          Dear Jimmy telemachus alias. Tell us, why did Gordon Brown give millionaires an £80,000 cheque every year for 13 years? That’s over a million pounds each that could have gone to all those deserving poor people who contribute so much to our society.

        • Colonel Mustard

          Why not go the whole hog with the cultural revolution. Drag the “greedy tory bankers” into the public square, give them a good beating then make them adopt the “jet plane” position while they are thoroughly criticised by red guards and jeered by the crowd – or in this case the socialists who always know better. Might be difficult to identify just who are “greedy tory bankers” but if some innocents have to suffer so be it – pour encourager les autres and all that, eh?

          • itdoesntaddup

            How many of them are French?

    • 2trueblue

      Like it was so good when Blair, Brown, Balls, Milliband, and the gang with their friend Whelan were minding the books? Child poverty grew, teenage unemployment grew, etc, and the so called great boom was just a sham. Yep just like all the ‘off-line’ stuff, a great way to build things…. on sand.

  • David Trant

    Osborne also said that there would be ‘new taxes on rich people’ to
    accompany the £10 billion of welfare cuts that he wants to see.

    I do hope we will have a stinging rebuke from you over the fact that Osborne wants to tax those luvvely rich people more, (till the pips squeak perhaps) I’m sure there wouldn’t be just a few lines from you if Miliband had made that statement!

  • LB

    national debt falling as a percentage of GDP by 2015/16.


    They can’t even report the debt without committing fraud.

    State pensions are a debt. Same with all the other pensions. The capital part of PFI is a debt. Expected losses on guarantees are a debt.

    FRS17 and GAAP are the accounting standards the government claims to use, and then says, we aren’t going to use them because that would mean reporting the debts.

    7,000 bn, not 1,050 bn.

    They are bust.

    • Chris lancashire

      Er, WE are bust.

      • telemachus

        Are we or are we not sick of these technicalities
        What we want to see is an economy growing and jobs for our youth
        If Osborne cannot deliver this he should move on

        • ToryOAP

          Jimmy, Jimmy, Jimmy, you know why Osborne can’t delivery? Because Gordon Brown and Ed Balls gave each milionaire an £80,000 cheque every year for 13 years.

        • Chris lancashire

          Ah the true socialist belief that the State can deliver anything – growth, jobs, free this, free that. Good to see. Carry on telemachus.

          • telemachus

            Have you heard of build for growth
            As the revenues roll in you cut the deficit

            • harold

              You mean “borrow and spend to debt serfdom forever”, don’t you?

            • Chris lancashire

              Oh, of course. Silly Osborne, clever Balls. Borrow a few billion more and it’ll all be alright. Can’t see why Osborne doesn’t get on and do it.

              • telemachus

                Nor can we
                All he sees is cut cut cut
                With growth he will need to cut less

        • dalai guevara

          No and yes and yes

    • james102

      Yes completely agree, all these ‘off book’ commitments need
      to be included and all the probably deliberate confusion between deficit and
      debt ended and made clear to the public.

      It is reported today that 53% of households are net beneficiaries
      of welfare—this is ridiculous. We are importing welfare dependency with open borders and funding a state sector we can’t afford by using the credit of future

    • HooksLaw

      ‘The National Debt’ as paid for in interest payments on the debt is the widely held definition that people well understand. There is no fraud.

      The govt are raising the pension age and battling with the public sector unions over pension liabilities – so that is not being ignored. The conservatives have long argued the point about PFI so that to is not being ignored.

      • harold

        Oh well alright then. It’s all in order. Triple A credit ratings for all. I’ll have another, ma’am.

    • dalai guevara

      Love your style – ‘they are bust’, hahaha. Now let’s print the hell out of it and inflate it away. Does anyone require any more investment advice?

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