Capital Gains Tax
Thanks to Tim Worstall for declaring his interest by confessing to being part of the Adam Smith Institute. The most uncontentious adjective applicable to the ASI is "Thatcherite", with their slavish belief in total privatisation, a flat rate tax and a state as small as possible.
If you look at the cited table it does NOT show a reduction in CGT income for "a decade and a half".
Why the hell should someone who makes their money from capital or who has liquid capital pay less tax than me or anyone who makes their living from their labour?!
One of the reasons why CGT income may drop if the rate is increased to Income Tax levels is that CGT is often an avoidance mechanism for those with capital, and if the taxation rates are equal we would see a drop in that mechanism; god forbid the effect on growth if directors paid themselves a simple salary.
Anyone with 3 years liquid capital and a flexibility with how one is paid (think rich beggars and directors of other people's companies) could effectively take some of their income as a capital investment (shares? share options?) and invest it in a 3 year buffer. 3 years later they take the capital gain on the investment as their income and reinvest some more for 3 years. This gives them a tax threshold and a much lower rate.
A lower rate CGT is basically saying that £1000 made from investing capital is worth more than £1000 earnt from your labour.
It is shameful that Blair/Brown spent 13 years pandering after Daily Mail readers rather than Labour's principals.