The Chancellor today gave an enlightening explanation of the reasoning behind the proposed changes to CGT. He told MP's,
“A single rate of capital gains tax is the right thing to do. Although I accept that some people are not happy about it, others have welcomed the proposal and therefore I intend to proceed with the changes.”
I think that we would respect Darling's decision more if there were some strong and persuasive arguments behind it. But just saying "some people agree with me"- you can get "some people" agreeing with anything! and this is the man running our economy. This sort of logic is enough to turn anyone's hair white- i'm just waiting for the eyebrows to follow!
LEADERS of the UK's four biggest business groups failed yesterday to convince Chancellor Alistair Darling to perform a U-turn on his controversial changes to the capital gains tax regime.
However they secured an assurance that Darling would "listen to proposals" on reducing the alleged ill-effects of the unexpected CGT changes.
Who are these people that have welcomed the proposals?
Some have tolerated them. I think everyone appreciates the simplicity - and anyone that would have paid 40% (I.e. was not been targeted by taper relief to promote investment) will obviously be happy.
I could happily support a policy which was worse for me but better for the UK - but I do not see anything good here for UK PLC.
Darling's stance to date
Posted - 19 October 2007 : 17:28:43
