I often wonder why nobody points out the obvious. So it’s left to me to be the voice of reason.
Unearned income is taxed less than earned income. Do you know why this is?
Well, it’s to do with National Insurance Contributions. NICs are levied on earnings. Unearned income such as rent, interest and dividends aren’t subject to it.
When Gordon Brown put 1% on all earned income, even above the upper earnings limit, he effectively made it more tax efficient to have income through investments rather than earnings. Prior to this, above that threshold earned income and unearned income were taxed at the same rate. So he incentivised a rent seeking economy.
When this was increased to 2%, he and Darling further incentivised investment over earning. The neoliberal and anti progressive Tories tried to stop this increase.
So I was very pleased to see that George Monbiot correctly identified the Conservative Party as the chief obstacle to introducing a land value tax since 1997 and for raising taxes on the strivers whilst looking out for their landowner chums from Eton.
If Labour were in power you wouldn’t see this sort of behaviour.
The Labour Party tackled rent seeking parasites before, I’m sure they’ll do it again.