Ed Balls' interview: The Fisherman responds
The Tax Commission set up by the Conservative Party to advise on tax policy has submitted its report. The Commission, chaired by Lord Forsyth of Drumlean, has identified £21bn worth of tax cuts. Reports of proposals of tax cuts of £19bn (see my earlier post) were not that far off, after all.
The press conference is due to take place tomorrow. Unfortunately, some bright spark put the report on the internet earlier today. It was taken down within an hour, but not before it had been viewed by the 'wrong eyes'. The eyes in question belonged to uncle Gordon's right-hand man, Ed Balls. He made a panic-stricken appearance on the Sky News, trying his desperate hardest to rubbish the report. The arguments are predictable: 'where is the money going to come from?' 'what services will they cut?' 'only 5 per cent of people pay inheritance tax, so this is a tax cut for the rich', 'same old conservatives', etc etc.
There really is no point responding to these arguments in full until the report is made public, but here are a few short answers to for Mr Balls to chew over in the meantime.
Where is the money going to come from?
Cutting identified public waste.
Also, the experience of other countries has been that lower taxes boost the economy, so the Treasure will actually gain more revenue by cutting taxes.
What services will they cut?
No frontline services will be cut, for sure. But there is plenty of scope for cutting waste. Think Gershon, think David James.
Only 5 per cent pay inheritance tax
I am yet to be convinced of this fact. However, just a quick look at HM Land Registry records will show you that the average house price is rising to such an extent as to take up a huge proportion of the inheritance tax nil rate band, which is currently set at £285,000. Every homeowner should worry about inheritance tax.
Same old Conservatives
Oh, make up your mind. One day, you accuse us of flip-flopping, and changing, and the next, we are the 'same old Conservatives'. This is getting really boring. At least, come up with some sensible lines of attack.
New Labour is a bankrupt ideas factory. The appearance of this report has them all running scared. And the debate hasn't even started yet.
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Ed Balls looked like a wild-eyed loon earlier today.