You make your own way or the State provides

TPA:

If you earn some money, save it, invest it in a company and then pass it on to your children, the Chancellor will take a bite at every opportunity. Add it all up and the real top rate of tax isn’t 40, 45 or 50 per cent. It is 95 per cent. Our high capital taxes undermine the incentive to work, save and invest in Britain. And the immense complexity of our tax code creates unfair discrepancies while calling into question the legitimacy of the whole system. That cannot last if we want to give all the people who are working hard to build up British businesses a chance at reviving our economy. We released really important research this week, building on the work of the 2020 Tax Commission, looking at how a much simpler, fairer and more competitive corporate tax system can be introduced.

Matt Sinclair, Chief Executive

How to fix corporate taxes

I wrote about our new report in the Daily Telegraph. Politicians should cut the worst capital taxes now – like Capital Gains Tax – and then take steps towards the strategic reforms we need for the longer term. See the full report for more detail.

When I think of free enterprise, I’m not thinking of the megacorporations, banksters or any of them. I’m thinking of the ordinary person with a bit of oomph like you and me.

Now there is a basic principle here, a basic bone of contention. One side of politics says that a system should exist where “if you earn some money, save it, invest it in a company and then pass it on to your children,” then there should be no mechanism which would rob you of that money at every turn.

This includes central government, local authorities, inc. council tax on property, VAT, all the myriad little “takings” from what we have to use. On the other hand, a certain amount of flat tax in one hit is fine – we can argue over the amount, from 10% to 33%, say.

I’d even go to 40% if I knew the money was going directly to defence, education and help for the genuinely helpless plus protection for pensioners.

If I can’t set up a business myself, I’ll shop around and accept reasonable conditions of employment from employers. The whole secret here though is that there must be loads of jobs and that will only happen if govts at all levels butt out and tax comes down astronomically.

There’s even a place for banks where a large initial investment is required. The criminal bankster activities are another thing.

That’s one side of politics. The other side of politics has a different mindset:

1. I’m owed something for nothing or at least a minimum of effort on my part and others should pay for that;

2. The government should protect me from the consequences of my laziness.

3. It’s far better to have universal this, universal that, at taxpayer expense so that I never need to worry about being fed and clothed and have a little box of my own to live in.

That latter is very tempting for many people, except that the people end up as they did in the USSR – incapable of looking after themselves, turning their neighbours in if they didn’t do as the government said, midnight vans arriving to take family members away, stagnation, little productivity.

In the end, that system must crash but some people favour it for as long as it lasts.

………..

Then there is another type of person. This person is the gung-ho “fair day’s work for a fair day’s pay”, “put the buggers in the army, that’ll sort ’em out”, “hang ’em high” type.

This person is full of the rhetoric and the basic principle is, of course, great but if there are simply no good jobs in the area because firms are folding due to crippling taxes and council criminal greed, if there is no growth and millions out of work, that gung-ho stance pales a bit.

There needs to be a bit of realism here. The answer is somewhere in the middle, as usual.

2 comments for “You make your own way or the State provides

  1. Voice of Reason
    May 31, 2013 at 2:25 pm

    Here in the US, the Capital Gains Rate is about 17%, versus the 35% Federal Tax that I pay. The GOP is trying to get that rate to 0%

  2. amfortas
    June 1, 2013 at 5:30 am

    SHOUT it out.

    The TAXES are TOO GODDAMNED HIGH.

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