Just ahead of Ed Miliband's keynote speech to Labour today (27th), and having seen the leaked reports, I think he may, in my view, be close to an ideal left-of-centre maxim regarding social and economic policy.
My view has been for some time this - We should adopt in the UK a tax and welfare system that differentiates between the deserving rich and the undeserving rich. It should also distinguish between the deserving poor and the undeserving poor. This seems to me to be a simple and clear principle.
Of course, implementation and details are harder. However, there are a few straightforward practical implications. For example - let's look again at an unearned income premium on income tax.
How about this ? (numbers are guesses, the principle is what is important) :
Income 0-15,000 no tax
15,000 - 20,000 no tax on earned/unearned income, 10 % on welfare income (except pensions, disability) so that work pays more through the tax system
20,000 upwards 30 % flat rate. Work and enterprise rewarded.
40,000 upwards unearned income (interest, dividends, capital gains, land deals, property profits, rent, bonuses, inheritance etc.) 50% flat rate.
Something like that ?
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