#Commonsensetaxationpolicy

I can hardly be bothered to write this because it is so basic in my opinion. However I shall do so in the battle against the nonsense of socialism.

Commonsense point one.

You have to have the money before you can give it away. You have to earn it. The Good Samaritan could only help because he had the funds to do so.

Socialists fail to understand this either because they are inept or because they willfully decide not to. Socialism is focused on redistribution of wealth - on fairness (as they see it) - on equality - taking off the rich to give to the poor. They are NOT focused on creating conditions to generate wealth - they despise the wealthy - they despise business - they despise employers. They see them as little more than cash cows. Even though the new Labour Government and particularly the Chancellor of the Exchequer Reeves said they were going for growth (the right thing to do) what they/she actually did when they first got into office was increases taxes on middle England and businesses - and gave it to the welfare state and public servants. Put another way - they torpedoed the prospect of growth.

Commonsense point two.

If taxation rates are set too high the tax take actually reduces. Socialists just cannot accept this truism and anytime they get in government they choose to ignore it for doctrinaire reasons. Why is it true though? 

Firstly while most people will be prepared to pay fair taxes for the sake of "society" it is not their primary motive for working. 

People work primarily to support themselves and secure the future of their families - to have a better life. 

If people (or businesses) feel their tax burden is too high - unfair - they will seek ways to reduce it. This can come in a number of forms :

• Tax avoidance.
• Tax evasion including the black market.
• Working less. Early retirement.
• Stop investing in the future.
• Closing businesses
• Emigrating/businesses relocating to another country.

High taxes disincentifies working hard. 

Working hard is further undermined if the worker sees his hard earned being creamed off by the government taxman to give to people who are not working hard - to fund welfare based lifestyles. Generous welfare benefits deincentifies a hard work ethic.

Another huge factor is high taxation reduces spending power. Businesses struggle. Confidence falls. Sales fall. Recession looms. Unemployment increases. Benefits bills increase.

The end result the tax take falls - certainly in the medium term. Worse still it makes economic growth much less likely. Hard work and business enterprise is the engine of growth.

POLICIES THAT WORK 

What works is the opposite of what socialists do. The key is to incentify hard work and reward enterprise. The key is to motivate people to do the right things.

How do you do that ?

Low taxes - allowing the hard workers to benefit from their hard work. It encourages spending. Confidence returns. Trade increases. Businesses do better. Employment increases. The opposite of recessionary pressures.

Low taxes to encourage entrepreneurship and investment in businesses. Why do it otherwise? Why take the risk - take the hassle - if all that happens is high taxes are levied on any profits? (I won't refer to excessive/additional employee rights and red tape at this time but it is another millstone around our businesses). Businesses are being stripped of their profits through high taxes - which leaves them without the funds to reinvest and grow.

Low taxes to encourage businesses to remain in the UK and to locate to the UK.

Cut Welfare benefits. While I 100% want to support the concept of welfare for the people that really need it I also have no doubt the welfare net is set too high and people who could help themselves more are not doing so - are excepting and are entitled to benefits and handouts. This disincentifies them from working - disincentifies them from taking personal responsibility for their own circumstances. It turns people who could be contributors into beneficiaries. Sadly it often generates a victim mentality - I am poor because other people are rich. What is the government doing for me ?

This is a massive drain on society. We cannot afford it. It is unsustainable. We are borrowing billions. The taxation being taken to fund it is crippling the country - dragging us to recession. It is also not good for the soul  - for self esteem - for mental health. It might seem like harsh medicine but we must wean people off welfare. We must get people back to work. This will be good for them - good for society - better for growth - taxes will come down - but the tax take will go up. As a result we will be better placed to help those that really need it and have the resources to improve our infrastructure. 

This is not the most carefully crafted blog I have ever written - but you will get the gist - sense my frustration. I am convinced it is based on practical reality. Based on commonsense. Based on real world observations.