Sunday, April 17, 2005

Tory tax snips

The Conservatives seem to be having a fairly good electoral campaign so far, Howard Flight and doctored photos aside. Today, they played their ace (Joker would be more appropriate) about tax cuts. It's the one subject they seem bashful about, "everyone" wants more spending on the NHS and education according to the pollsters, but then want everyone else to pay more tax as they already pay too much!! The Conservatives have been able to tease us by saying they will give £4bn of our money back to us as we know how to spend our money best. Why have they then totally spoiled their vote winning claim by saying that we will only get our money back if we have a pension? Yes, I know there is a pensions crisis. Means tested benefits and a marginal rate of tax of 40% on savings is a far greater reason not to save than being given an extra £10 back for every £100 put in a pension fund is a reason to save. It would be far better to say that personal allowances will be increased and they want us to save more rather than only giving tax cuts to those who have a personal pension.

I recognise that the Conservatives, like Labour, can never say that taxes will not rise in the future, but unlike Labour I would like to think that they could make a pledge that as far as is possible, taxes will not rise on their watch.

I am slowly coming to the conclusion that the best thing for the Conservatives is to narrowly lose the election to Labour, taxes will inevitably rise, people will become more and more incensed about this. The Conservatives will then sweep to power in a landslide victory in 2009.


lascivious said...

To be fair, I think the Tories are the only party to even attempt at getting us to save for a pension. The state pension is a flawed concept, and it is running up behind us to bite us on the bottom. In order to acheive long-term low taxes (or even taxes at the current level) we have to shift the burden from the state.

Snafu said...

Totally agree, we have to shift the burden from the state. However, there are still far too many disncentives to save for your retirement unless you are already quite well off.