Tuesday, April 06, 2010

Tax does need to be taxing.

As Hopi points out, David Cameron didn't always believe in simple answers to complex tax matters.

We all know that the easiest thing in the world is for an opposition party to stand up at an event like this and blithely talk about all the efficiency savings we will make in government: how we will streamline public spending, how we can close tax loopholes, how we can move towards a bright future of less spending and less tax with a few well-chosen cuts that miraculously deliver substantial savings without harming public service delivery at all...

To make a long list of efficiency savings in advance of an election; to add them up to produce a great big total; to turn that total into debt reduction, spending increases elsewhere and a tax cut? People didn’t believe it, for the very good reason that controlling public spending is not about a one-off efficiency drive, it’s about a whole new culture of government. There is a simple fact which political historians amongst you will know very well. The government “efficiency drive” is one of the oldest tricks in the book. The trouble is, it’s nearly always just that – a trick.

But he's changed his mind now. Who knows what he'll be thinking of next?

Remember also that all those businessmen loudly supporting the scrapping of the NI increase have their bottom line at heart. When George said that 'we're all in this together,' he may not have mentioned the clauses excluding certain groups. Businesses have benefitted from the support that the government has provided over the past year or so, so they need to understand that they have a role to play in paying the bill.

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