Sunday, 17 August 2008

Minister calls for 'tax on rich'.

A minister has called on the government to consider a tax on high
earners to help the middle classes through the economic slowdown.

Writing in the Sunday Times, Health Minister Ivan Lewis said introducing
practical measures to boost morale at this difficult time was vital.

He warns that Labour will lose the next election if they do not take
tough tax decisions to bail out core voters.

His comments come as a poll suggests Labour Party popularity is waning.

The latest YouGov poll, commissioned by the Sunday Times, showed that
Labour's support was at 25%, with the Conservative Party in a 20-point
lead.

Since the party's defeat in the Glasgow East by-election in July, there
has been criticism by some within the party about Prime Minister Gordon
Brown's performance as leader and his ability to win Labour a fourth
term in office.

'Duty to act'

The only way to win the next election, Mr Lewis warns, is by protecting
the living standards of the "mainstream majority" that helped secure
Labour's victory in the past three elections.

"Our duty is to act decisively and make tax and spending decisions that
show we understand what it is like to cope with rising food, fuel and
utility bills," Mr Lewis said.

"If as a result of the current economic situation the only way to help
hard-pressed middle-class families is to ask the higher earners to pay
more, then serious consideration should be given to that," he added.

He does not specify how much one has to earn to fall within this
bracket, but it is thought to be aimed at people earning £250,000 and
more, according to the newspaper.

Other suggestions include a windfall tax or a temporary freeze on stamp
duty payments.

This would ensure "meaningful extra help" for the hard-pressed middle
classes who "work long hours for their two holidays a year", but are now
struggling with the basic cost of living.

Earlier this month, Chancellor Alistair Darling said that a stamp duty
holiday was one option the government was considering to boost the
stagnant housing market.

The government has also come under pressure to impose a windfall tax on
energy companies amid soaring petrol and energy costs.

Story from BBC NEWS:
http://news. bbc.co.uk/ go/pr/fr/ -/1/hi/uk_ politics/ 7566274.stm

Published: 2008/08/17 08:50:36 GMT