November 25, 2008

THE RETURN TO HOOVERISM:

Tax rise is a repudiation of New Labour (Andrew Grice, 25 November 2008, Independent)

Peter Mandelson, one of New Labour's architects, memorably said that it was "intensely relaxed about people getting filthy rich". Yesterday, after the Cabinet was briefed on Alistair Darling's plan to raise the top rate of income tax for people earning £150,000 a year, Lord Mandelson told the meeting: "In the sweep of history, this will not be seen as the tectonic plates shifting."

Nevertheless, the surprise move is a pivotal moment. For years, tax was such a toxic issue for New Labour that anyone daring to raise it in public was sent to the party's equivalent of Siberia.

Yesterday's surprise announcement that Labour will raise the top rate from 40p to 45p in the pound if it wins the next election marks a sea change for New Labour.


Because raising taxes worked so well for Hoover and FDR?

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Posted by Orrin Judd at November 25, 2008 9:09 AM
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