Stop Blaming Capitalism for our Economic Woes and Start Blaming the State! (Sean Howlett for Huffington Post The Blog)
To read the full article, visit the Huffington Post website.
“Any political party that wishes to make meaningful change to this country must become the standard bearer of free market economics. They should follow the wisdom of the Centre for Policy Studies. Their policy ‘The Road FROM Serfdom’ proposes to abolish Capital Gains Tax for small- and medium-sized businesses, freeing £3 billion for them to invest. Furthermore, the CPS policy also proposes the abolition of Corporation Tax for SMEs, leaving only the large multi-national corporations liable to pay it; freeing up another £8 billion for investment. Based on 2009-2013 trends, the resulting money would be invested, paid out in dividends and used to create more private sector jobs; which all results in further consumer spending and economic growth.
You might then ask: “What happens to tax receipts?” The idea is that extra private sector jobs – created through private sector investment – lead onto a reduced benefits bill and greater tax revenue (Laffer Economics 101 here). As a result, the country would have a lower deficit, lower debt, higher growth and a subsequent increase in living standards. Just look at the recent corporation tax cuts over the past 4 years and yet revenue from corporation tax has gone up, not down.”
To read the full article, visit the Huffington Post website.
Date Added: Tuesday 21st April 2015
