Liam Fox’s plan
[Re: End universal benefits and cut tax to rebuild UK future, yesterday]
I agree with the general thrust of Liam Fox’s argument, and wish that George Osborne and David Cameron could articulate such a clear governing philosophy. But I have to disagree with the specifics around capital gains tax. All taxation should be underpinned by equality – all forms of income should be treated the same. Of course, capital gains thresholds should be adjusted to reflect inflation, but the tax should ultimately be levied at the same rate as for interest, rent, and salaries.
Well said Fox. This is, at last, an attempt to provide a narrative to free market economics and politics. Someone is finally explaining why seemingly harsh measures need to be taken for the good of all, rather than just following the easy, cheap shots of those who give money away with alacrity – until, of course, it runs out.
Unfortunately, more means testing of universal benefits means more form-filling and bureaucracy. By all means, scrap universal benefits. But this can be done better by, for example, incorporating them into the state pension – where they can be taxed. Equally, we should increase personal allowances to take people out of tax. This is a far less bureucratic route.
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