Tax policy 1
On the day Gordon Brown tries to repair his battered reputation in the City, the Shadow Chancellor, George Osborne reiterates the Conservative Party's proposal to abolish stamp duty on shares.
The Tories are expected to adopt the Forsyth Commission recommendation to abolish this tax, but why stop there? It is rumoured that the Forsyth report, which will be published tomorrow, has identified over £19b worth of tax cuts. Expect David Cameron to back away from the fight.
The Fisherman welcomes the news of the proposed abolition. It is a good first step, and good for our pension funds. However, we need a lot more than that. An increase in the tax-free personal allowance plus a reduction in the basic rate of income tax would be a good starting point. The Conservative Party should also consider abolishing inheritance tax, or at least, significantly increasing the nil rate band. Unlike proposing to abolish stamp duty on shares, (which will no doubt be spun by the left wing media as 'Tories looking out for their rich mates'), action on these other taxes will resonate with a larger section of the electorate. Plus it's also good for the economy. Lower taxes stimulate economic growth. This is a proven fact.
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