FUNDING AND A RESTORED 10 PENCE TAX RATE

Early day motion 1535, tabled 12 May 2008 by Michael Meacher (Labour). Signed by 21 members.

That this House, whilst welcoming the Government's intention to compensate losers as a result of the abolition of the 10 pence income tax rate band, notes that it is almost impossible to provide full compensation to all such losers without undue cost, excessive complexity and unintended side-effects to the tax credit and personal allowance systems; and calls upon the Government to reintroduce the 10 pence tax rate and to fund the £6.6 billion cost of this measure by limiting the benefit to poorer and standard rate taxpayers, thus saving £2.4 billion, charging capital gains tax (CGT) on all share-dealings on the London Stock Exchange by requiring automatic declaration by the stockbroker of all such deals, thus raising at least an extra £3 to £4 billion a year, charging CGT on the sales by foreign owners of commercial property they hold in the UK, which are currently untaxed and would raise nearly £½ billion a year, and charging income tax rather than CGT, on short-term trades of financial assets which have been held for less than a year, which would raise a further £½ billion a year and thereby ensuring that the cost of restoring the 10 pence tax rate is borne solely by redistribution from the richest 10 per cent. of society whose wealth has trebled since 1997.

Signatures by party: Labour 19, Independent 1, Scottish National Party 1.