Funny what the BBC misses out of its news reports.
One of the big political battlegrounds is ‘fairness’….just how much are the Rich really suffering for instance…just how much are they paying in taxes?
That’s right at the heart of Labour’s attack on the Tories…accused of being the party for Millionaires and big business.
First of all though, no mention of this by the BBC in their report:
Growth expected to be 2.6% in 2014 …Growth of 2.6% would leave the UK amongst the fastest growing developed economies.
Yeah…definitely don’t want to mention that. Why let people know the good news?
Then there’s this…..from the Telegraph:
UK tax system is ‘punishing success’ says Institute for Fiscal Studies
IFS voices concern about state’s growing reliance on tax revenue from small number of high earners
“The Government might be concerned if the Exchequer becomes increasingly reliant on one particular revenue source, as it increases the risk that a shock to one revenue source would have serious implications for total revenues,” the IFS said in its annual Green Budget.
Politicians should resist the “knee-jerk” urge to tax the rich harder during downturns or risk them leaving the country, the economists said.
And the Daily Mail has this big old headline:
Top 1% of earners already pay almost 30% of all income tax as IFS warns half of spending cuts have still not been made
The BBC do not have that headline….and in fact do not mention the rather important statement by the IFS in their report on the IFS’s analysis:
Cost of living crisis to turn around this year, IFS says
Which is curious really because the BBC mentions everything else that is eyecatching except this one very politically relevant fact contained in this IFS press release:
Harder to quantify are the risks associated with our increasing reliance on a small group of very rich taxpayers. The share of income tax paid by the top 1% of taxpayers rose from 11% in 1979 to 27.5% in 2011–12. The income tax alone paid by these 300,000 very high income individuals accounts for 7.5% of all tax revenue. These individuals will of course also pay a large fraction of VAT and capital taxes.
And it’s not the only time the IFS has mentioned this ….from a few days ago…here being more explicit that there is a risk:
The Exchequer is, perhaps worryingly, reliant on this very small group of individuals for a very large fraction of revenue: the 1% of income tax payers with incomes in excess of £150,000 pay somewhere between 25 and 30% of all income tax.
And income tax is set to become even more important as government’s switch from trying to impose corporation tax on will-o-the-wisp multi-nationals and raise it instead on the income of employees, VAT and NI….
‘….government is becoming increasingly reliant on the three main taxes–income tax, VAT and National Insurance contributions (NICs) –which will account for two thirds of all revenue by 2018–19‘
In other words we will be even more reliant on the top earners….so Labour scaring them off by imposing even more taxes (50p + rate?) is possibly not a good idea if you are reliant on them to stay and pay taxes…..see the effect Ed’s mate Hollande and his socialist tax has had on the French rich….they’ve all moved to London….along with their income tax.
Interesting the BBC doesn’t want you to know that the rich are paying such a huge sum of money that we are too ‘reliant upon it’….and that there are risks associated with (Labour’s policy of) relying upon soaking the Rich.
Not something Ed Miliband would like to have broadcast.
And note yet again the BBC concentrates on ‘real wages’…which the IFS tells us is misleading as a measure of the cost of living…as it does not equate to actual income received.
In other words even if ‘real wages’ are still rising only slowly it doesn’t mean there is a ‘cost of living crisis’…..sluggish wage growth appears to be a long-term pattern that has little to do with the recession or the current government.
“However painful falling wages may be, it is important to note that they may have been instrumental in preventing a much larger increase in unemployment,” is how the professors put it…..Labour has repeatedly cited the IFS’s research on falling wages without quoting them on this important point.
The BBC as well funnily enough.
‘……But never mind the facts, perhaps it really is how people feel that is most important to the politicians.
As Mr Miliband knows, 81 per cent of respondents in a recent YouGov poll said they believed prices grew faster than household incomes over the last year.’