Are you sitting comfortably? Good. So, listen up. The Tory party, in an attempt to resurrect its faltering campaign, is going to offer tax cuts.
Michael Crick confirmed on Newsnight that the Tories will stop next year's rise in national insurance contributions. It will be announced in the next few days, but, as yet, there are no details where the money will come from.
Let’s get this straight. The country has no money. Our debts are nearly £900bn and this year the deficit is £167bn. We all know that, after the election, public expenditure will be cut and taxes will have to rise further than has already been announced.
Even a cynical and sceptical electorate understand that in these dire circumstances what you give with one hand, you take with the other.
So, how do you sell a tax cut?
Team Cameron, it’s over to you.
Posts
Cutting taxes on business is exactly the sort of thing the Tories should be doing. You don't drive growth and cut the deficit by increasing business taxes.
ReplyDeleteThis is nothing new - the Conservatives have always said they are opposed to the rise in NI contributions as they say it is essentially a tax on jobs. The question you should be asking, if you were economically competent, is why Labour is proposing to raise the tax on employers hiring whilst simultaneously talking about the fragility of the recovery?
ReplyDeleteThis post demonstrates an appalling grasp of economic matters and makes me question everything else you have written here. Perhaps you should stick to just banging on about Alan Johnson.
ReplyDeleteYou don't get it. It nothing to do with economics. The next six weeks is about winning the election. Labour will just drive a coach and horses through this proposal.
ReplyDeleteIt's politics, stupid.
You didn't present it like that in your original post - you just said its unaffordable considering our current debt and deficit. A NI reduction (or rather, not raising it) is certainly affordable as it would reduce some of the drag on employers hiring thus reducing the amount of unemployed and the benefits which they need.
ReplyDeleteNow you are backpedaling and saying it is all about Gordon Brown and Labour going on the offensive and saying that this is all about giving an ideological tax cut. However Labour (and you) want to portray it, this is a sensible pro-growth measure from the Conservatives.