Written by Peter Bingle, Chairman, Bell Pottinger Public Affairs
There is no greater fan of George Osborne than me. He is proving to be a great Chancellor of the Exchequer. His decision shortly after last year's general election to commit the coalition to a strategy of cutting public spending of £83 million was a political masterstroke. He grows more dominant by the hour. Ed Balls is unable to lay a finger on him.
Yesterday the IMF issued a ringing endorsement of the Chancellor's strategy. Interestingly, however, they suggested that tax cuts may be necessary to ensure that the strategy in the end succeeds.
I believe that the debate about tax is not just political or economic. It is also moral.
Those on the left always portray low tax as the alternative to good quality public services. It is somehow suggested that you cannot have both. This is not borne out by what happens locally in Wandsworth, Westminster and Hammersmith & Fulham. These flagship council prove that it is possible to have great public services and low taxes.
Yesterday the IMF issued a ringing endorsement of the Chancellor's strategy. Interestingly, however, they suggested that tax cuts may be necessary to ensure that the strategy in the end succeeds.
I believe that the debate about tax is not just political or economic. It is also moral.
Those on the left always portray low tax as the alternative to good quality public services. It is somehow suggested that you cannot have both. This is not borne out by what happens locally in Wandsworth, Westminster and Hammersmith & Fulham. These flagship council prove that it is possible to have great public services and low taxes.
Those on the left also always focus the tax debate on those of us who are described (unfairly!) as rich and wealthy. It is now clear that the 50p tax was not introduced to raise additional revenue (HM Treasury's own figures show that it does not) but as a classic Labour Party act of class hatred. It must go and quickly. It is a major disincentive to working harder.
When George was first appointed Shadow Chancellor of the Exchequer he looked seriously at a flat tax. I hope he returns to the issue. The coalition is proving to be a very radical government. So why not be radical on tax?
In his wonderful memoirs Nigel Lawson reveals that had it not been for the cost of introducing the community charge he would have abolished the top rate of tax. What a different world it would now be if he had done so. A top rate of tax is immoral.
Tax is not just an issue for the wealthy. It is an issue for everybody. There are some middle-class folk (in places such as Hampstead, Haringey and Islington) who want to pay high tax but they are a tiny minority. There is nothing to stop them writing out a cheque to George for the amount of tax they think they have underpaid but I doubt that they will do so! The rest of us don't like paying tax and look forward to the day when George is able to announce substantial tax cuts.
Perhaps the government should consult us over the issue. The Treasury could set out what additional spending cuts would be necessary to reduce the basic rate of tax by 1p, 2p or 3p. I suspect that the public would support additional spending cuts (apart from the Royal Opera House and the English National Opera of course) to enable the Chancellor to reduce tax. At the very least we need to have the debate.
I have never trusted the state. That is why I support reducing its size and role. It should be a safety net for those that genuinely cannot help themselves but nothing more. Power should be returned to the little people like you and me. A key element of this redistribution of power is reducing the tax we have to pay. I hope George has the courage of his convictions.
Should George Osborne abolish the 50p tax rate? Should George Osborne completely abolish the higher rate of tax? Should HM Treasury consult us on which additional spending cuts are necessary to fund tax cuts? Let me know your views.
When George was first appointed Shadow Chancellor of the Exchequer he looked seriously at a flat tax. I hope he returns to the issue. The coalition is proving to be a very radical government. So why not be radical on tax?
In his wonderful memoirs Nigel Lawson reveals that had it not been for the cost of introducing the community charge he would have abolished the top rate of tax. What a different world it would now be if he had done so. A top rate of tax is immoral.
Tax is not just an issue for the wealthy. It is an issue for everybody. There are some middle-class folk (in places such as Hampstead, Haringey and Islington) who want to pay high tax but they are a tiny minority. There is nothing to stop them writing out a cheque to George for the amount of tax they think they have underpaid but I doubt that they will do so! The rest of us don't like paying tax and look forward to the day when George is able to announce substantial tax cuts.
Perhaps the government should consult us over the issue. The Treasury could set out what additional spending cuts would be necessary to reduce the basic rate of tax by 1p, 2p or 3p. I suspect that the public would support additional spending cuts (apart from the Royal Opera House and the English National Opera of course) to enable the Chancellor to reduce tax. At the very least we need to have the debate.
I have never trusted the state. That is why I support reducing its size and role. It should be a safety net for those that genuinely cannot help themselves but nothing more. Power should be returned to the little people like you and me. A key element of this redistribution of power is reducing the tax we have to pay. I hope George has the courage of his convictions.
Should George Osborne abolish the 50p tax rate? Should George Osborne completely abolish the higher rate of tax? Should HM Treasury consult us on which additional spending cuts are necessary to fund tax cuts? Let me know your views.
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