Oh Nick; why, why pander to the politics of envy? increasing taxes does not cure a recession – it prolongs it. Nor is it relevant to growing the economy. It’s cheap headline to gain attention. That’s it. Surely Nick should be learning from Hollande in France, who is currently experiencing capital flights due to high taxes. Sending the wealth creators to America, the Middle East and the Far East will not help the poor – it will make matters much worse.
If we want to help the low and middle income earners, then there is a much easier way without taxing wealth: cut their taxes, instead. Some possible ideas:
- Cut the basic rate of tax to 18p
- Scrap N.I contributions for minimum wage workers (make it cheaper to create jobs)
- Increase the Income Tax threshold to £13,000
- Assist the ‘squeezed middle’ by lowering the 40p rate
But if you opt for the easiest route, taxing the rich, then we will continue to perpetuate the hideous politics of envy and create a culture of despising those who are successful. In other words, a party that is anti-aspiration.
In conclusion, though, this tax would not work. Similar to Labour’s Bankers’ Bonuses tax, the revenue will be little and would prove to be expensive. Britain’s problem is government spending; cutting it will bring down the deficit much quicker – not introduce a temporary tax.
It’s an interesting start to kick off conference season, but don’t expect it to be in the budget. And even Clegg knows that.