Realist, not conformist analysis of the latest financial, business and political news

Dear Larry Elliott – What Race To The Bottom On Tax?

A line from Larry Elliott’s latest piece showing that of course the Tories are wrong on the economy:

[perfectpullquote align=”full” bordertop=”false” cite=”” link=”” color=”” class=”” size=””]Even so, the race to the bottom on tax is in some sense welcome.[/perfectpullquote]

If only we’d had such a race:

Tax to GDP

We have historically high taxes for the UK economy. More of everything goes through government than normal. So, what tax race to the bottom?

[perfectpullquote align=”full” bordertop=”false” cite=”” link=”” color=”” class=”” size=””]For a start, it validates the use of tax and spending as an economic tool.[/perfectpullquote]

What I assume Larry means is that this set of promises of lower tax is indeed a validation. Which is fine then, of course. Because lower taxation would indeed be a validation of the idea that less government is beneficial.

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Jonathan Harston
Jonathan Harston
5 years ago

Meanwhile, the French have found something else not nailed down and taxed it, introducing an online sales tax. Is the French government really so short of money? Can’t they just wait a few months and start taxing Frenchies who want to buy British goods?

Oops, no, that money goes to Bussels.

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