Published by , November 26th 2009 at 4:56 pm
Lucky richest 13 times better off than poorest under Tory marriage tax plan
A written answer to a parliamentary question shows the regressive nature of the Conservative party’s plans to provide a tax break for married couples.
The chart below reproduced from the answer given to Lord Oakeshott of Seagrove Bay shows the distributional impact of the Tory policy. The policy is expected to cost £4.9 billion with the richest decile getting a tax break thirteen times as big as the least well off. This will raise questions about the party’s commitment to reducing inequality and comes on the back of revelations in yesterday’s Mirror about the £7 million windfall that Shadow Cabinet members would receive from reductions to inheritance tax.
At Conservative party conference, George Osborne, said: “We are going to support marriage in the tax and benefit system.” The policy appears to derive from a set of July 2007 policy recommendations to the Conservative party by the Social Justice Policy Group outlined:
“A TPA [Transferable Personal Allowance] of the full personal allowance amount would provide only modest financial support for marriage – £20 a week to those making use of it – encouraging rather than incentivising it. The main rationale for the allowance would be to provide symbolic recognition of the institution of marriage. It would indicate that marriage is valued because of its benefits to children and the wider society. It would make it easier for a mother or father to remain at home to look after their children whilst the other spouse worked, or for one partner to do voluntary work within the community, look after elderly or disabled members or manage a home in a way that enables partners and families to have more undivided time together. We would thus see this as a measure with the potential to increase family stability and improve the quality of family life.”
David Cameron has come under attack in recent weeks for claims he has made over poverty and inequality.
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RT @leftfootfwd Richest will be 13x better off than poorest with Tory marriage tax break. So much 4 tackling inequality http://bit.ly/6U6EYB
RT @leftfootfwd: Rich will be 13 x better off than poor under Tory marriage tax break. So much for tackling inequality http://bit.ly/6U6EYB
RT @leftfootfwd: richest will be 13 times better off than poorest under Tory marriage tax break. http://bit.ly/6U6EYB
RT @leftfootfwd: Lucky richest will be 13x better off than poorest under Tory marriage tax break: http://bit.ly/6U6EYB #Toryfail
Richest thirteen times better off under Tory marriage tax break …: The Tories married couples tax break will .. http://bit.ly/5ZQKT1
[...] other post full of win on today’s Left Foot assesses the Conservatives’ policy of tax incentives and its [...]
Tory marriange tax break would mainly benefit rich: http://tinyurl.com/ygd6bb2
RT @tommilleruk: Tory marriage tax break would mainly benefit rich: http://tinyurl.com/ygd6bb2
[...] Left Foot Forward and others have pointed out, the policy would cost £4.9 billion and would give thirteen times the [...]
@Kevin_Maguire Good frontpage 2morro. Have u seen how the marriage tax break benefit the richest 13x more than poorest? http://bit.ly/8dk4rm
[...] “The good news that if you earn over a 100,000 a year, you can afford a few extra bottles of champagn…. The bad news is, If your husband left you this morning, you’re not only single, you’re [...]
[...] in the tax system” although it won’t be the expensive £4.9 billion policy originally proposed by Iain Duncan Smith in [...]
@Sambo119 but the rich will benefit the most: http://bit.ly/8dk4rm
@richardpbacon http://www.leftfootforward.org/2009/11/richest-thirteen-times-better-off-under-tory-marriage-tax-break/
[...] year, Left Foot Forward outlined the regressive distributional impact of the £4.9 billion tax break for all married [...]
[...] a ring on the finger will make it all better. It is, of course, patronising nonsense aimed at the already affluent and (coupled with the inheritance tax giveaway to the very wealthy) gives a fairly clear indication [...]