Miliband's howler over marginal rates on Today

Posted by Christie Malry on November 26, 2010 at 1:51 pm

Labour leader Ed Miliband was on the Today programme this morning, in a mid length interview with grizzler-in-chief, John Humphrys. And it was a real stinker. Even the party faithful are struggling to maintain a smile in the face of his lack of vision, monodrone delivery and hapless inability to grasp even his own policies (inasmuch as he actually has any). The CiF brigade similarly found little to like. Most ire so far has focused on his refusal to define who he means by the term "squeezed middle".

But there was a far worse howler in there. Humphrys asked about the 50% tax rate, over which Miliband had slapped down his own Shadow Chancellor about whether it should be permanent. Miliband thought it should be permanent because it would help to bring down the deficit and because,  for people earning a lot, a marginal rate of 50% was fair. He then said that 60% would not be fair.

Danger, Will Robinson! The 50% rate only applies to those earning over £150,000 per year. Those earning between £100,000 and £150,000 pay a marginal rate, thanks to National Insurance and withdrawal of the personal allowance, of 61%. There are even worse marginal rates at lower levels of income thanks to the impact of benefits withdrawal.

If a marginal tax rate of 60% is unfair for someone earning £150,000, how can Miliband explain the former Labour government, of which he was part, presiding over the introduction of a marginal rate of 61% on those earning much less (even accepting that it's still a lot of money). And why dither for so long over the effective marginal rates for benefit claimants?

Answers, Ed? He'd better be quick; after today's miserable performance, the vultures in his own party will be circling.

Written on my Android mobile phone. Article may be edited later.

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