3rd September 2006

The Citizen gave a page to Nick Haines, a tax director, who argued in favour of abolishing inheritance tax (29/08/06). Polls consistently support this move - but people are easily misled about who pays it. Only 16% of the population paid it last year and most of the rich give away large sums before they die. If they survive for a magic seven years, they pay nothing.

Our society is now more unequal than at any time since 1880s - the top 1% of the population owns 23% of everything while the bottom 50% owns just 6%. Last week City dealers' bonuses soared higher than ever, to £21bn, dwarfing the £3.3bn tax take from all their inheritances.

Research shows that higher inequality is accompanied by more violence, lower trust and poorer community relations: people are happier in fairer societies with better public services paid for by fairer taxation.

Clearly our tax system does need reform. Inheritance tax should be progressively banded and levied according to the wealth of the person inheriting not the person bequeathing the inheritance. Additionally Council tax needs replacing with a land value tax like in some US cities: impossible to avoid, fair and progressive.

The Liberal Democrats are sadly now ditching one of their best policies: a 50% tax on earnings over £100,000. This would bring in £6.5bn from the top 1%. This now leaves the Green party being the only party committed to a fairer society.

Cllr Martin Whiteside
Hillside, Claypits Lane, Lypiatt, Stroud
Stroud District Green Party Parliamentary Spokesperson