Ryan Bourne writes ‘It’s time for the Chancellor to make the case for capitalism, and recognise that as Margaret Thatcher outlined, the Good Samaritan did not just have good intentions –he also had money’ in an article for The Commentator
“For months, the Chancellor has effectively spun the line that there is no money available for tax cuts. When he gave the Autumn Statement in November, the few of us who suggested rebalancing within the deficit reduction framework were dismissed as being ‘unrealistic’. The scope for re-examining the forecast £714.5 billion expenditure this year was out of the question.
Now the mood seems to have changed. Suddenly, tax cuts are on the agenda again. Yes, deficit reduction is still essential but most have begun to recognise that so far the early closure of it has been over-reliant on raising the tax burden and cancelling capital projects. Just 6 percent of the planned contribution of current expenditure cuts to deficit closure has been implemented.
It’s fair to say the Lib Dems have stolen a march in the tax debate. But while their call for lower personal taxes, through a rise in the income tax personal allowance, is welcome, their left-wing redistributive instincts appear uncontrollable. First, we had the mansion tax; then a tycoon tax. What next, a Bentley tax?
The anti-wealth and anti-rich Budget briefing and counter-briefing will have done nothing to enhance business confidence as the economy continues to falter. We do not need new taxes. But the Lib Dems domination of the debate so far provides the Conservatives with an opportunity to carve out a distinct Budget pitch which recognises that long-term recovery will only arrive when private sector enterprise is enabled to flourish.”
Click here to view the rest of Ryan’s article on The Commentator website.
The 21 Policies publication by Ryan Bourne and Tim Knox can be downloaded here.
Date Added: Wednesday 14th March 2012