For richer or poorer, tax breaks are fairer

The article by Philip Collins on these pages last week captured very well a sophisticated scepticism about my party’s pledge to recognise marriage in the tax system. However, it also revealed one of the flaws in Blairism — its blindness to institutions and how they matter.
For a start, he writes as if there is no recognition of marriage in benefits and taxes at the moment. But this isn’t correct. Most of the benefits system does not treat us as individuals but as couples and families. It saves money by fingering any adult, notably a spouse, who should take responsibility for you if you have no income. That is why people losing jobs in the recession are finding that if their spouse has even quite modest earnings they have no entitlement to benefits.
The tax system already recognises marriage as well. Only last year the Government changed inheritance tax, for example, to give specially favourable treatment to transfers of assets to a spouse. Some readers who were persuaded by Philip Collins’s article would have been up in arms if his arguments had been applied to property that they wanted to transfer to a spouse. In fact, these tax breaks may be one reason why most middle-class, middle-aged couples end up married even if they never expected to — it is how you protect your property for your partner.

http://www.timesonline.co.uk/tol/comment/columnists/guest_contributors/article6719672.ece

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The Under - employed

'More than one million jobless Britons have been living off state handouts for more than 12 years, it has emerged.
A hardcore army of unemployed have failed to find any sort of work since Labour came to power in 1997.
The true scale of the crisis has been laid bare by figures which break down for the first time the length of time people have been out of work.
A further 1.9million have been on benefits for seven years or more, according to the Department of Work and Pensions.
The 1.1million unemployed since 1997 amounts to more than a fifth of the 5.2million currently claiming out-of-work benefits.
The figures also reveal that youth employment has soared under Labour from 665,000 in 1997 to 888,000 today - a staggering 34 per cent.
Opposition MPs said the cost to the public purse could be as much as £4billion. They added that an entire generation has permanently dropped out of society, leading to increased family breakdown and crime.
Official statistics show that the gap between rich and poor has widened under Labour, with the poorest 10 per cent forced to survive on an income of just £87-aweek compared to £96 in 1997.
Health inequalities have also increased, growing 4 per cent for men and 11 per cent for women.
The revelations will fuel anger on Labour's backbenches that the party has betrayed the most vulnerable in society.
Frustration boiled over earlier this week when Labour MPs launched a fresh assault on Gordon Brown's controversial decision to abolish the 10p tax band.'

Is there a North / South Divide?

I have worked and lived in different parts of the country and there are definitely different attitudes to creating wealth. The SE is the hub of enterprise and attracts the young, brightest and best.
The 'can do' people.

The NE has a poor wealth creating 'ambience'. Portrayed by One North East's failure of mission 'In the northeast of England the state is expected to be responsible for 66.4% of the economy this year, up from 58.7% when a similar study was carried out four years ago. When Labour came to power, the figure was 53.8%.'

Many of the traditional industries of the North have expired and there is little incentive for people to replace them, as they are propped up by other peoples money, namely benefits The young and bright in the SE abhor anything to do with joblessness and handouts. Those in the North are less likely to move to find work, prefering state handouts to stay put.

They have a penchant for big monolithic unions to carry out 'What we have we hold' and stifling enterprise. Put that with poor management and businesses cannot survive. There is a herd mentality, which shows itself as we are 'victims'. Not I will stand on my hind legs and make a go of this.

Funnily enough the Government does have the answer but not in QUANGOs and handouts as they are self defeating and delivered little They should start removing them, then watch the people start up small businesses and taking control of their own lives.
Government can help by removing red tape, inappropiate taxation and over zealous regulations.

That is wealth creation, its an interesting picture if you are talking about the impact on the society.