Britain Squeezes the Affluent First

From the headlines in London, you might think Prime Minister David Cameron is in trouble. When his government announced plans for a modest first cut in welfare payments last week—higher-earning taxpayers will forfeit their "child benefit" entitlements—the right-wing Daily Mail warned that the possible loss of some $30 per child per week would unleash THE FURY OF STAY-AT-HOME MUMS. It seemed that for the sake of saving £1 billion ($1.59 billion) a year, the Tory leader had risked alienating a powerful segment of his party's natural supporters.

But polls tell a different story. Despite the clamor in the press, the public overwhelmingly favors the change. One survey says more than four out of five Britons back the measure. After all, the cut will affect only the richest households, a bare 15 percent of the population. "It's fair that those with the broadest shoulders should bear the greatest load," Cameron argued. Indeed, this could be a smart moment to be seen clobbering the affluent. Cameron knows that the wider program of public spending cuts he will announce later this month—the deepest since World War II—will mean real hardship for the lowest paid. Hitting the rich first may look like asking for trouble, but it's actually smart politics.

Uncommon Knowledge

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