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No joy from taxing the rich

According to a report in today's Sunday Times many Labour candidates are worried the party will lose the support of business. They are right to be worried but Miliband and Balls will find it difficult to win back the business vote. Blair and Brown worked hard on it when in opposition. It wasn't something that came together in a few months.

Labour is instinctively correct in looking to top earners to contribute or share some of the pain. The problem is that too many of them are immune.  The Tory mantra that taxing the rich is counter productive has not only a ring of truth but a considerable grain of truth. They argue that the rich are paying more in taxes with the top rate reduced than when the top rate was higher and the top 1% of earners pay almost one third of tax revenue.

It is not difficult to see that bashing the poor is easy compared to bashing the rich.

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