I support tax cuts. The UK is overtaxed. Too much tax holds back work and effort, restricts enterprise and puts off saving and investment.
In the last Parliament many MPs were looking for new ways to tax, or wanting to put up the rates of existing taxes. Today in the election the Liberal Democrat and Labour parties advance two dangerous arguments. They first reckon that the UK is still undertaxed, and want to see more tax on property, on incomes and on effort. The second is they think that higher rates of some taxes will raise more revenue, when experience shows it may well lead to a drop in revenue.
I argued against raising Capital Gains Tax to the 40% the Liberal Democrats wanted in 2010. I helped secure a compromise, at 28%. This was still well up on Labour’s very sensible 18% rate. As I feared, it was too high and it has led to a major loss of revenue compared to the money collected at 18% prior to the financial crisis. I want to see this tax rate back down to say 20%, just a little above Labour’s 18% rate. The state will raise a lot more revenue from it at such a rate.
I argued against raising the top rate of Income Tax to 50%, as that was bound to lead to a loss of revenue. On this occasion the Liberal Democrats prevailed for a bit, and the state suffered as less tax was collected from the highest earners. Once a Conservative Chancellor insisted on cutting the rate to 45%, tax revenue went up from top earners. I want to see this rate back down to the 40% Labour used to impose.
I do not wish to see any so called Mansion Tax imposed. Tax cuts for all will boost the economy and lead to an increase in revenue as the country gets richer on the back of lower tax rates.
JOHN REDWOOD SPEAKING FOR WOKINGHAM SPEAKING FOR ENGLAND
Published and promoted by Thomas Puddy for John Redwood, both of 30 Rose Street Wokingham RG40 1XU