David Cameron was attacked last week as lacking conviction and equivocating on whether the Conservatives if elected would still be committed to tax breaks for married couples, perhaps given the poor state of the public finances. Certainly the UK seems to be quite unique in Europe in not recognising the civil status of marriage within the tax code. It is recognised within the French tax system and in Germany the Constitution also protects the rights of the family.
The arguments in the UK against a tax favouring married couples include:
– It would discriminate against the poorest 10% of society, where the marriage rate is disproportionately much lower (i.e. Ian Duncan Smith »s »Broken Society ») and favour the better-off (e.g. a net benefit saving of £30 for the former versus £300 for the latter).
– It is not the government »s role in a modern, multi-cultural society to try and coerce the population into marriage via the tax system; it should be a matter for individual choice.
The right to individual choice is of course a basic Conservative tenet as well as a respect for tradition including the institution of marriage in support of the stable family unit for nurturing future generations.
The Labour Party views David Cameron as the modern Conservative Party »s major asset certainly when compared with Gordon Brown and, therefore, will try to paint him as shallow, lacking both depth and conviction at every opportunity in front of the electorate. However, to take a stand on this issue is good for the rank and file but not likely to be a real vote winner for attracting new Conservative voters from the centre ground in the key marginal constituencies.
There would appear to be a good case now for rebalancing of the British tax system with the top tax rising to 50% in April and the UK then having one of the highest rates of income tax in the developed world. A lower top rate would be more attractive to international businesses looking to relocate to (or remain in) the UK as it tends to offset other perceived disadvantages.There is no moral reason why the better off should not pay more tax than those less fortunate but with the new rate the top 10% of earners will account for over 50% ( compared with 35% in 1978 with Labour in power) of the total tax take! Their share of the overall tax burden has also grown much more rapidly than their share of total income. At the other end of the scale some of the lowest 10% of earners can find it much more attractive as a « family unit » for the two partners to live apart, be taxed separately and have the local Council house the mother and children whilst also picking up associated costs.
Whilst the main political parties argue the merits or otherwise of marriage in support of a stable family life for the children, the results of a survey on social attitudes in the UK just released today indicate that attitudes could be changing i.e.:
– 45% of those surveyed think that it makes no difference as to whether a couple are married or just living together as a family.
– More of those surveyed consider themselves Conservative rather than Labour.
Perhaps marriage is not such a major issue for today » »s Conservative voter?