I agree about this surprisingly as I don't like Labour. http://uk.news.yahoo.com/labour-calls-vat-tax-cut-boost-economy-144305126.html
I used to go to UK for business, and always felt poor since everything is so out of reach there with all those taxes and VAT. I still have not figured out what it is that those folks in UK produce anymore other than financials and insurance and brokers. SHTF happening now in UK.
Taxes are wealth destructive. The higher the tax, the less people work. Wealth is work, therefore higher taxes = less wealth created. The economy should be optimized for maximum wealth creation in the private sector. 90%+ of the worlds problems are economic in origin (sounds very Bearice-ish, I know....). Ie too few resources. Ie not enough money. Therefore, maximizing wealth generation should be the #1 priority of every Government. Except Governments act not in the best interests of their people, but in the best interests of themselves. That means their first priority is to maintain and enlarge the power monopoly of the State. This is why they continually raise taxes - to stifle economic growth which creates an underclass of impoverished serfs beholden to Government for their very lives. So as the Government crushes the private sector, the ranks of the poor swell, and the more people vote for even Bigger Government. The Welfare State is self-perpetuating, both economically and politically. Which is why bureaucrats continually push the Social Agenda harder and harder. Socialism isn't class warfare, rich versus poor. Socialism is economic warfare, the Ruling Class versus the citizens.
Well said. It's a sad sight to see when people end up voting for the very thieves that are impoverishing them, in exchange for empty promises and a few stolen handouts.
North Sea oil. Which is running out, and moved the UK into an oil importer instead of being an oil exporter. Which is why they're in a jar of pickles.
When you mention socialism, you have no idea what you are talking about. Socialism is the regime in late USSR and a few formerly allied countries. The key feature of socialism was 99% employment. A person who decided to "retire" before the official retirement age would receive a visit from the local police who would offer a local job like sweping streets. Failure to take any job would result in a criminal conviction and a couple of years in a forced labour camp. Don't forget German Nazis called their regime "socialism" too. So, modern "welfare state" is NOT socialism because it actually encourages people not to work.
Funny enough you mention that. Shelf oil production in the UK is decreasing primarily due to punishing taxes. As the price of oil increases BP keeps closing shelf platforms. It has nothing to do with the oil running out - just profit versus taxes.
Ed Balls is being hypocritical in his rhetorics. A couple of years ago as a member of the cabinet he defended the VAT rise by Labour prime minister Gordon Brown. Now the same Ed Balls blames the coalition government for not reverting the tax to pre-Gordon Brown levels.
Govt's primary responsibility is to create jobs in the economy. I believe VAT cut will create new jobs.
This would explain why Ed is not so keen on reducing personal income tax. 50% marginal top rate is not too high for Ed.