Tuesday 11 November 2008

tax cuts to help the middle classes

On the subject of tax cuts, helping small businesses is a good idea - I agree with Cameron for that, but, given the fiscal circumstances, a rise in the top rate of taxt to 42%-45% would be part of a new just dispensation after the years of neo-liberalism; it would also be prudent politically, because you cannot keep expecting ordinary people to take the hit in the name of freedom or or capitalism. Let the rich take on some of the burden, which at the moment is taken by the middle classes. We live in a society where the underclass can live happily on benefits, the elite are cushioned from the disfunctionality of the welfare society, but the ordinary, hard working people are being squeezed. An increase in top rate of tax will help our borrowing requirement and redistribute the burden at this time of trouble.

The conservatives need to get on the right side of this issue. Drip-down economics is part of the ideology of doctrinaire economic (neo)-liberalism. If Brown raises taxes, it will deal a heavy blow to the tories.

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