Poll after poll shows that voters believe they are overtaxed. This week's budget has hiked taxes yet again - and still the economy struggles. The impending recession is used as an excuse NOT to cut taxes when, in reality, it is the precise time that taxes SHOULD be cut so as to stimulate investment and spending.
Taxes can be cut in such a way as to tie into David Cameron's desire to show the Tories are being pro-family and compassionate. If the nil rate band were to be raised to, say, £10,000 each and every taxpayer would benefit - but the greatest benefit would be felt by the lowest paid. It would therefore be socially just as well as electorally popular. It would also be philosophically the right thing to do.
We can only hope that David Cameron and George Osborne haven't forgotten the lessons of the October Party Conference when the Tories returned from the dead by announcing electorally popular cuts in inheritance tax.
5 comments:
Why isn't there a single reference to what area of spending would be cut (or grow at a slower rat) to support this or, indeed, even how much it would actually cost?
When are the Tories going to understand campaigning basics like pitching calls for cuts in the right context? It should be simple:
(1) Identify SPECIFIC waste / unnecessary spend
(2) Make commitment to cut same
(3) Explain resultant tax change to hand money back to taxpayer OR
(4) Alternative spend.
Time and again the Tories start at (3) and then scrabble about looking for (1) when challenged in the media or by Labour...
Until they get this right (and I firmly believe it can be done - ID cards, SureStart, ASBO co-ordinators etc.) they'll neither deserve nor get power.
Hi Cassilis - nice to hear from you. I think you're being a little unfair on me there. I have made a host of spending cut pledges time and time again on my blog. ID cards would indeed be a easy place to start, though.
Fair comment - I'm a relatively new reader so will take your word for that.
In one sense my point stands though - the Tories need to make sure any calls for cuts are accompanied by a specific and costed explanation of how it's to be delivered. If not Labour (and their media supporters) will wheel out the 'schools'n'hospitals' line and the public won't trust Cameron...
Didn't I see a blog post that said taking Quango costs back to 1997 levels would cut out the whole of income tax, and leave some spare ?
UNLESS the Tories promise LESS SPENDING, while stating where, and hence LESS TAXATION, why should anyone vote for them ?
The idea that they MIGHT be marginally better managers of the state monster is NOT a vote-winner.
Alan Douglas
One other problem is that when the economy takes a dip the budget moves into higher deficit necessitating higher borrowing. Higher deficits have damaging effects on an economy too so it is vital to match tax cuts with real and achievable savings. Anything else just exacerbates an already difficult situation.
Apart from that I like the idea but would prefer it to be part of a plan to move to a flatter system of income tax.
Post a Comment