Conservatives Clash Over Radical Taxation Proposals

A whirlwind of political pandemonium is headed our way. Rishi Sunak may have just stepped into the ring as Prime Minister, despite his elevation, the scent of big government still lingers as former advisor Tim Leunig cozies up to Labour and proposes a radical overhaul of property taxes. 

The plan calls for axing unpopular levies like council tax and stamp duty in favor of new taxes tied to home values.

Across the aisle, Work and Pensions Secretary Liz Kendall is on the war path, vowing to avenge Conservative cuts she claims punished the vulnerable. But with welfare spending projected to balloon 48% in the coming years, can she avoid slashing benefits despite her promises?

Kendall on the other hand, plans a winter offensive targeting Tory rhetoric that denigrated the unemployed as shirkers. But will her reforms pack a punch or fizzle out as political posturing?

The stage is set for a crossover cage match as Leunig and Sunak shape up over housing taxes while Kendall and the Tories spar on welfare. 

Who will be left standing when the final bell rings? Grab some popcorn and stay glued as this political battle royale plays out!

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Rishi Sunak’s spirit doesn’t seem to escape his big government instincts, even after moving into 10 Downing Street, it still latches on. With his former advisor Tim Leunig now urging Labour to implement sweeping new property taxes, it appears the tax-and-spend impulses that defined Sunak’s Treasury tenure continue to infect the Conservative party. 

Leunig, an economist that helped design Sunak’s furlough scheme, has advised the government for years. Now he is essentially counseling Labour on how best to fleece homeowners to fund more government spending. What a difference an election makes.

In newly released research for a think tank, Leunig advocates abolishing both council tax and stamp duty. In their place he wants new property levies based on home values rather than dated valuations. This includes a national tax on homes over £500k. 

While Leunig presents this as a smarter, fairer system, make no mistake – this is a tax hike scheme designed to separate citizens from more of their hard-earned money. It sneakily takes advantage of public dissatisfaction with current property taxes to institute even higher taxation.

This is an unsurprising proposal from an economist enamored with big government solutions. But the fact it comes soon after Sunak’s tenure as Chancellor is concerning. It seems Sunak’s team, with Leunig as exhibit A, yearns to radically expand the tax burden on British families.

Sunak himself showed flashes of fiscal restraint early on at No. 11. But he quickly embraced Gordon Brown levels of spending during the pandemic, at immense cost to the nation’s finances. With debt spiraling, it appears his allies like Leunig now aim to double down on soaking the taxpayers to pay the bills.

Conservatives must avoid the temptation to punish homeowners as the easy fix to the economic mess left by Covid. While council tax could use reform, simply implementing new wealth taxes on properties is an assault on aspiration. Homeownership, often obtained through years of sacrifice, should not be punished.

Leunig’s presumption that those in modest homes in poorer northern towns should pay reduced rates, while wealthy London homeowners get hammered, exposes the class warfare inherent in his proposal. Radical tax changes along these lines would deprive citizens of economic liberty.

One must hope Sunak has the wisdom to distance himself from the damaging tax policies his own advisors are now pitching to Labour. But Leunig’s continued prominence in Tory circles suggests the big-spending mindset remains deeply embedded in the party.

Sunak rose to power on promises of fiscal restraint and sober Tory stewardship after Liz Truss’ disastrous mini-budget. Yet with characters like Leunig still exerting influence over Conservative tax policy, skepticism lingers if Sunak can deliver. 

So far, Sunak has taken only tentative steps to get spending under control after the Covid debt explosion. With his allies proposing giant property tax increases, Sunak’s fortitude for budget discipline remains doubtful. 

The Conservatives must remember that lower taxes, minimal regulations, and restrained spending are the path to prosperity. Caving to left-wing taxation fetishes like Leunig’s could permanently cripple the economy.

Britain needs leaders ready to govern as conservatives, not paternalistic technocrats eager to engineering society through coercive taxes and wealth redistribution. One can hope Sunak realizes this truth.  

Yet the fact he elevated big government proponents like Leunig suggests otherwise. The UK treasury may have a new chancellor, but it seems the old interventionist instincts still predominate for many Tories. This spells trouble.

The Conservatives would be wise to ignore the tax plans laid out by Leunig and other Keynesian liberals. Britain’s road to recovery lies in responsible budgeting, creating opportunity through free enterprise, and celebrating aspiration.

Citizens have sacrificed much over the past few years. They deserve leaders ready to empower them to build better lives, not punish their home values with radical new taxes.

Britons are resilient, entrepreneurial, and hard-working. The Tories must recognize that potential. However, if they instead take cues from Leunig’s socialist policy wish list, the Conservatives risk losing touch with the British people.

The dangers of radical new property taxes are already on display across the pond in Canada. After instituting a speculation tax on homes in Ontario, the outcomes were utterly counterproductive. Revenue projections vastly undershot targets, while the tax dampened housing construction and sales.

Labour Declares War On “Heartless” Tory Welfare Cuts

Rather than curb foreign speculation as intended, Ontario’s failed tax experiment primarily harmed domestic homeowners. Construction declined as builders were penalized, inventory dried up, and renters faced even fewer affordable options. 

This cautionary tale from Canada’s housing market should give UK policymakers immense pause about similar taxes.

Meanwhile, Labour Work and pensions secretary Liz Kendall pledged to halt Tory ‘salami slicing’ of benefits completely, surrounding welfare and reform the current system. She criticized past Conservative rhetoric that denounced benefit claimants as “shirkers” and suggested some don’t work because they feel entitled to do so.

Kendall warned that rising welfare spending is unsustainable, with projections showing a 48% real-terms increase in incapacity and disability benefits over 6 years. She promised Labour will not resort to “salami-slicing” cuts but rather enact major reforms.

The focus will be overhauling the back-to-work system Kendall described as “broken” and failing many of the near record 2.8 million Britons economically inactive due to long-term sickness. Reconnecting job centers to their original purpose as public employment services is a key goal.

Chancellor Rachel Reeves has already indicated tough decisions on welfare are coming in the autumn budget. Kendall did not commit to lifting the two-child limit on benefits but named tackling child poverty as a priority.

The Conservatives criticized Labour for recent above-inflation pay deals with unions, contrasting this with talk of restraining welfare. They argue Labour is prioritizing pay rises over getting welfare spending under control.

Kendall acknowledged the enormity of the challenge but believes reforms based on supporting claimants, not blaming them, can make the system sustainable. She aims to unveil detailed reform plans in an upcoming white paper.

To address economic inactivity, Kendall said she will implement locally-led plans engaging mayors and empowering communities. She also aims to review Universal Credit and institute a “youth guarantee” to provide skills training, apprenticeships, and employment support for 18-21 year olds.

While not providing specifics, Kendall hinted at wanting to link job centers closer to the NHS to better assist the long-term sick. Her statements suggest a view that the current work-first approach fails to address complex barriers faced by some claimants. Kendall contends deep systemic reforms are required beyond short-term cuts to make welfare sustainable and effective.

Moreover, Liz also mentioned that her massive new plan against the Tories will take part of Rachel Reeves’ first budget plan this autumn. 

The Tories’ shameful treatment of vulnerable citizens relying on welfare benefits exposes their callousness. Through years of cuts and demoralizing rhetoric, they intentionally villainized the unemployed and disabled for political gain. This dehumanizing strategy allowed Conservatives to justify slashing support for those in need.  

By peddling the myth of widespread benefit fraud, the Tories misleadingly portrayed claimants as lazy freeloaders bilking hardworking taxpayers. In reality, the vast majority genuinely require assistance, especially amidst economic turmoil.

Such insidious rhetoric justified policies that punished the innocent along with a tiny minority of bad actors. The two-child limit, benefit sanctions regimes, and constant threats of cuts terrorized struggling families already facing immense challenges.