Tuesday, 20 March 2012
Lower taxes help the poor.
This is hopelessly simplistic. Rich people nowadays are so mobile that they don't have to stand around and hand 50% of their earnings over to the government. I certainly wouldn't. In fact, I think it is morally objectionable for an individual to be spending half of their time effectively working for the government.
Lower taxes encourage the wealthy to stay in the UK and pay taxes here. If wealthy people stay in the country, they are more likely to invest in the country rather than focus on investment in international markets that are crying out for their finance. And who benefits from that? The poor and aspirational who rely on the wealthy risking capital and investing in order for a job in the private sector.
Decreasing government spending dramatically in the long term also means that poor people no longer become reliant on the state, a disease that has crept into many communities in England and crippled aspiration. It is sad and unnecessary. The underclass beneath the working class has been fostered thanks to high taxes, high government spending and a cradle-to-grave welfare system that is costly and damaging to these people by discouraging financial well-being and independence.
Everyone should pay their fair share, which is why I favour a low, simple, flat tax to stop tax avoidance. But it is time that government in the UK stood on the side of wealth creators and entrepreneurs who drive our economy by slashing taxes, red tape and regulation.