There is a thirst amongst left wing politicians to tax and then tax more so as to pay for utopia. They want high personal rates of tax as well as high corporate tax rates. The answer to any questioning of the sense of this is that those with the biggest pockets must help those less well off.
In theory it sounds fair and indeed is a known vote winner amongst a certain section of society. It may come as no surprise to you to know that bye and large that section of society is the one that won’t be paying any more tax. I have seen during one of my looks at question time on BBC before I can’t take any more nonsense a panellist bravely saying that upping tax rates too high is counter productive because business will relocate and take with them higher rate tax payers. The member of the mob the BBC had got in became indignant and said that was disgusting and people should feel ashamed of themselves for having that attitude. The one thing the moron didn’t want to do was to actually listen and consider. He became agitated and at or about that stage I decided that I had better things to do with my time.
There was a time in this country when tax rates on unearned income were 98%. The chancellor of the exchequer at the time ended up retiring to a farm he had bought himself and used to cackle away when he was reminded of that policy which drove so many people abroad that it was referred to as a brain drain. In 1979 Thatcher took over from labour at a time when we were on our knees thanks to years of the country being run by left wing union bosses who used to tell the Labour government of the day what to do during beer and sandwiches at 10 Downing street. So bad was the economy that it was some time before the highest tax rate could be reduced from 60%. In 1992 Labour thought they would regain power but could not resist promising to increase taxes and that plus Kinnock celebrating somewhat prematurely gave Major a five year run.
Then along came Tony Blair who kept taxes at a sensible level and only when the banking crises came did they increase the personal rate again. Efforts are being made to slowly lower taxes albeit they are still above Blair’s targets.
However all has changed. Brexit means that subject to whatever concessions we may or may not make to do a deal with the EU we will be free to set our own rates of tax without either criticism or in the case of VAT limits of how little we can charge as per EU rules. It was suggested in the press that word was floating round that we may become a low corporate and personal tax country to encourage inward investment. Inward investment is good as it brings jobs into the country and in turn more jobs including the higher rate payers from abroad. Jobs mean more tax from workers and all in all is thought to be good for the country. There were a few bleats from the Remain side that it would be disastrous because low tax rates would mean less tax to pay for our welfare bills. So already one could sense a band wagon from the left against it and no doubt it would be seen as pandering to the rich rather than of a benefit in creating inward investment and jobs.
However this week the EU have come to the rescue of people like me who believe it would be good for the country. I am not sure of the political make up of those who form the policy makers in the EU but by and large they seem to have veered to the left over the years. It matters not what their leanings because they have come out and said that if we want to have some sort of trade deal with them then we must agree that we wont become a super low tax country.
So there you have it. Even the EU acknowledge that having a low corporate and personal tax rate can attract business to the advantage of the country in question. Of course we knew it after all look at Ireland and all those tax havens. But here we have it from Europe a left leaning continent.
So what those of you who may still be reading this may say. Well listen sometime to Corbyn and his fellow IRA loving friend McDonald and work out what sort of tax rates they would increase to. Why don’t they like the idea of a low tax high growth economy off the back of it ? Because they cant stand the thought that some people might do really well and some companies be here because we have a competitive tax system. They would rather punish the wealthy for having created jobs and paid taxes all their lives. Even if that harms the very people they say they want to help.
The EU would not have said what they said if they weren’t concerned at the effect on them if we went low tax rates. So why cannot low tax rates be the future thereby leaving the public to spend the extra money they keep on goods they want instead of a bloated public sector spending a reducing tax intake as people gravitate to the low tax rate countries of whom there are quite a number.