From Merryn’s Blog (GBR) –
I went on a Scottish TV programme last night to talk about the various attempts from the various parties to come up with an income tax plan that will differentiate them from each other. It isn’t going that well.
The Tories are (perfectly sensibly) sticking with the tax structure on the go in the rest of the UK. The SNP is (oddly in my view) having a little kick at middle Scotland by refusing to pass on George Osborne’s rise in the 40% threshold to them. Labour has a plan to make everyone pay more (1p on the two lower bands and 5p extra on the additional rate band), and the Greens have gone nuts with a plan to introduce a new band that would have everyone earning not much more than £27,000 paying more tax and those on £150,000 plus being hit with a nasty 60% rate.
One of the things the “tax the rich” brigade like to say in Scotland is that not very many of the well-off will leave if their tax rates goes to 50%. That may be so. But here’s the problem. You don’t need many of them to leave to have a serious fiscal problem.