March 21st, 2012
05:52 PM GMT
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London (CNN) –It will come as no surprise that the Conservative-led UK government says lower taxes bring in more revenue, because the rich will come and business will spend.

Taxes cut, pensioners hit

And it is not a surprise that left leaning parties disagree and say that such a policy will get the rich off the hook while poorer workers pay too much tax.

UK finance minister George Osborne is trying to have it both ways.

The UK will cut the corporate tax rate eventually to 22% and the top rate of personal tax from 50% to 45% - at a time of austerity. He says the top rate did not bring in the revenue expected. The rich do find ways around these things.

Fiscal plan

On the other hand, Osborne announced a host of loop-hole closing when it comes to the super rich buying and selling property. This all in the name of fairness.

London benefits greatly from non-citizens buying here. People from Russia, India, China and the Middle East buy properties in central London, and don't always pay the tax citizens do. But that is changing. Further, owners of any home worth more than £2 million will pay a higher rate of tax. The government is creaming a bit more off the top.

Of course governments always promise to crack down on tax avoidance and to close loop holes. Can the UK actually do it?

Cutting taxes for the rich will please Conservative voters. Raising the "Mansion Tax" will please others, though maybe not the non-doms who call London a second or third or fourth home. What it won't do is drive the rich from London.

The government can and should take a bit more from those who come here for the freedom, schools, reliable services and lifestyle.



soundoff (9 Responses)
  1. Glenn

    Lower taxes is the panacea for all the world's problems according to the rich. Look at the finances of the US government in comparison or the personal finances of the poor in the developing world.

    Everything for less...everything taken to an extreme. The super rich claim poverty and the majority must learn to accept a standard of living closer to the developing world. It all makes perfect sense.

    March 21, 2012 at 7:05 pm |
  2. Tara

    I am a Canadian citizen who met and fell in love with my British fiance two years ago and we have been engaged for some time. We have a legitimate relationship and I have ample skills, but forcing more taxes or higher costs to foreigners makes it so much harder for us to enjoy our lives together on British soil. As it is we are being swamped by visa costs and rules up to our eyeballs made to try and keep illegals out, but is also keeping people like us from being able to pursue our dreams. We are not all trying to milk the system for benefits. Attack the deadbeats on welfare that are making up a third of where the taxes are going.

    March 21, 2012 at 7:17 pm |
  3. dr A Kruger

    "In the name of fairness" if all people's votes count the same, they should all pay the same amount of tax. If not, the superior intelligence and work ethic that made them rich should give their votes more weight: Let all votes count proportional to a person's age (experience), knowledge and amount of tax paid.

    March 21, 2012 at 8:10 pm |
  4. Henk

    The UK is close to bankrupt. It already has the largest disparity between rich and poor of all EU nations. Remember the chaos in many UK cities. Lets help the rich some more before the entire UK collapses.

    March 22, 2012 at 7:09 am |
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