It’s not good to be rich in Britain. One is properly punished there for making too much money as becomes a welfare state. From every Briton that earns over £150,000 (or $243,000) a year, the government takes half of that in income tax. The well-off now face a further cut to tax relief on their pension contributions. An announced increase in the inheritance tax threshold has been put on hold but the taxman is still going after those with offshore bank accounts for it seems that in Britain today no crime is worse than the outrageous practice of tax evasion.
Even The Economist is upset and it calls Gordon Brown’s bashing of the rich “bad politics and rotten economics.” With elections arriving in a little over six months, Labour is doing everything it can to prove that it is still the “party of the many” whereas the Conservatives are branded as the “protectors of privilege and gleeful spending slashers.”
An extra tax on bankers’ bonuses this year is meant to smooth over voters but it does little to aid Britain’s ailing economy. The last of the G20 countries to be mired in recession, all the Labour government can think of doing is spending more money in the hope that such Keynesian methods will save Britain from further stagnation.
Now, with what will probably turn out to be a dreadful election ahead, Gordon Brown and his party are throwing themselves up as defenders of the common man again. Bashing the rich isn’t all about class politics though. As The Economist points out, the government needs the additional funds badly to keep its social services running, the imperfectly reformed National Health Service first among them. These are “disproportionately used by the poor” while “their employees tend to vote Labour.” By looking after the state, the party is looking after its core vote. The paper doesn’t like it one bit:
Britain has much experience of class politics, and none of it has been good. Class politics makes for bad economics: the state swells, public money gets wasted and entrepreneurs grow nervous. And it makes for a sad country, too: divisions deepen, suspicion flourishes and the social contract frays. When the time comes to judge the parties’ electoral strategies, voters should remember that.