Taxing bads
- 12 Jul 07, 10:26 AM
"What's the Big Idea?" people often ask politicians. Well, today sees the launch of one very Big Idea - we can have income tax cuts if we pay more in green taxes on driving and flying.
This morning the Lib Dems published plans which they claim can take the basic rate of income tax to its lowest level since 1916. They are not alone in this thinking though. The Tories promised tax break for marriage would, they say, be paid for by higher green taxes. Oddly, you might think, Gordon Brown as chancellor allowed the amount green taxes raise to go down as a share of tax income although he did hike Air Passenger Duty recently to pay for his other plans.
In one sense there is nothing new in this. Ever since the "window tax" and, no doubt, even before then politicians have searched for "painless" ways to tax us or at least ways we won't notice or may not squeal about. Taxing the bads to pay for tax cuts on the good is a snappy slogan for the opposition parties. The test will come when people consider how much more they'll be paying to get to work and go on their hols.
