Why is it that politicians can never see past their limitations and constantly come up with the same solutions to any and all problems. Take Nicky (boy) Clegg, the Lib Dem leader who in order to solve the recession came out with the usual left wing classic of soak the rich…
BBC.
Chancellor George Osborne has warned against “driving away” the UK’s “wealth creators” after Deputy Prime Minister Nick Clegg called for a temporary additional tax on the rich.
Mr Clegg argued that those of “very considerable” means should pay more into the system, leading to an angry reaction from several Tory MPs.
He said this should come in addition to the Lib Dems’ proposed “mansion tax”.
But Mr Osborne said it was important not to deter business from the UK.
In recent weeks there have been several reported clashes between Liberal Democrats and Conservatives over issues including House of Lords reform, airport expansion and plans to redraw boundaries for House of Commons seats.
Now I’m no big fan of the Tories, but they do seem to grasp the laffer curve principal of taxation far better than pretty much any of the current political parties in the commons. What Cleggy boy is proposing will probably have exactly the opposite effect to the one he believes will happen. Should he get his way, pretty much everyone in the category he chooses to rob tax, also has the money to bugger off abroad and never return. But it’s not just that small fact that will cause the problems, those that do leave will no longer invest in our economy, spend money in our shops, hire professionals to do work for them and all the other bits and bobs the well off contribute to our society.
Yet Cleggy boy can’t see this, or chooses not too, nor for that matter do any of the hard of thinking political left as their constant cries for robbery with menaces higher taxation on the rich.
You never hear calls for lower government spending, less government involvement, you might hear the odd call for lower taxation, but it’s never in line with less government, that sadly is not how politicians think.
Would that they did…
Clegg is a one-trick pony. Whatever the problem, the answer is more taxation, more borrowing and more government i.e. more of him.
It’s hard to believe even he doesn’t grasp the truth of the Laffer Curve (albeit a Five-live presenter was in shock at this new concept live on air recently). More likely it is a bit of grubby politicking trying to shore up his pitiful position with his lentil-munching praetorian guards in the Lib-Dems. Even their spokeswoman on taxation said she ‘looked forward to hearing details of the policy’
Like mich of Nick Clegg its irrelevant hot air that will never see the light of implementation.
1. As I said in May 2010: “Now, for a short spell, Clegg’s playing with the big boys, and they’re going to have his marbles and the bag they came in.” – link to theylaughedatnoah.blogspot.co.uk
2. “The rich” covers those who made money making life better for us, and those who did it by ripping us off. I’m less concerned to tax them all than to recover damages in full from the latter.
Clegg’s appraoch typifies the notion that what we have today are politicians and not leaders. His idea (such as it is) is flawed on so many levels the media should be stringing him up on this one.
Firstly it presumes there to be a revenue problem when it’s a spending problem. Give them all the money in the country and they will still want more.
Secondly he presumes all this untaxed money is based on revenue generated in this country. Such people have global portfolios and I can’t see countries like the US agreeing to income they could potentially decide to be taxable going into the UK coffers, given the mess they’re in.
Thirdly – aren’t we at a point where we’re borrowing to pay the debt interest. What’s a one off going to solve that won’t need solving next year and what are you going to do that with once all the wealth creators have left. Then you’ll have to go after the middle class.
It’s truly scary that this man has the ear of the PM.
“It’s truly scary that this man has the ear of the PM.”
Well it would be if there was any indication the PM actually took him seriously, rather than humouring him in return for votes…
Restoring Britain. Good post which deals with the real issues behind Clegg’s naivete. I am not an economist but I think it is extremely odd that “tax the rich” (the last resort of mentally bankrupt politicians) can in the short or longer term really substitute for the generation of what we might call real wealth.
That is the restoration of a sound manufacturing base where we actually make and sell things to each other and abroad. Taxing the rich may bring in a relatively small income to the Treasury temporarily, but past experience teaches us the obvious lesson that you point out – such investors will go ‘off shore’ and out of the UK
just when we need their creative activity most.
One first step to remedy the lack of economic growth generation would be to divest business entirely of the regulatory burdens imposed by our government in liasion with the malign European Union.
Some thoughts from here in the US:
1. The people with most of the money and income don’t ‘create’ anything, let alone jobs. The big money these days comes from moving money and taking a small cut each time.
2. My reading of this blog and elsewhere leads me to the conclusion that British politicians are copying lots of bad ideas from the US: cutting public pensions, charging for University, etc. The tax ideas that I see the conservatives trying are straight from the GOP handbook.
3. Tax levels in the US for the top incomes are at the lowest level since WWII, and the GOP platform is to reduce them even more.
4. Another plank in the GOP platform is to completely eliminate Capital Gains and Estate taxes. The top incomes would then pay practically nothing, and then their heirs would get it all. Talk about elimininating social mobility!
Re your 1, I’m inclined to agree that there are more of the rippers-off than the benefitters. So damages in full would raise a lot more than the tax – and repair the system.
The people paying the tax should be the people who decide where those taxes are spent. Anything else is just theft.
And all this lecturing from a wealthy politician who didn’t even earn his wealth. He married it.