Boris attacks ‘misguided’ Lib-Dem plan for wealth tax

 
Wealth tax warning: London Mayor Boris Johnson Pic: PA
Pippa Crerar6 September 2012

Boris Johnson today warned against introducing a wealth tax, claiming it would hit Londoners too hard.

The Mayor waded in as shadow chancellor Ed Balls offered a deal with the Liberal Democrats to hit owners of high-value properties.

Mr Johnson’s key target was a “misguided” plan by Nick Clegg for a time-limited emergency levy on wealth, in addition to the party’s mansion tax proposal.

In a letter to Chancellor George Osborne, Mr Johnson wrote: “Recent speculation in some quarters about taxes on wealth as an answer to the public finance mess we inherited from the previous government is misguided.

“Growth and jobs are the key to overcoming our current problems, not new tax burdens.”

The Mayor said a mansion tax on £2 million homes would unfairly hit London. “It would also take years to introduce, cost hundreds of millions, and would severely affect those who may be asset rich but have low incomes.”

In an interview with the Independent, Mr Balls dismissed Mr Clegg’s ideas but said Business Secretary Vince Cable’s call for a tax on £2 million homes was a “serious” proposal. “The likes of

a mansion tax need to be on the table,” he said. His intervention was seen as an attempt to drive a wedge between Mr Cable and Mr Clegg. Mr Cable has said that the Lib-Dems will still push for a wealth tax. “It is a tax that will be very hard [for people] to avoid. At some point my Tory colleagues may be persuaded of that.”

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