By Tom Winnifrith | Wednesday 17 May 2017
Our in-house remoaning, money tree-worshipping, metropolitan elitist, Darren Atwater has posted an article suggesting that Labour's manifesto maths adds up. Maybe Diane Abbott and Darren think so, but no-one else will be fooled.
The trouble with socialists is that eventually they run out of other people's money. So said Margaret Thatcher. She was right.
Labour promises to spend an extra £48 billion on various schemes and according to Paul Mason (ex BBC, ex Guardian, ex Communist Party of Great Britain), shadow chancellor "semtex" John McDonnell has identified £52 billion of savings/new taxes to pay for this. Mason, like Atwater, is either naive or stupid or both.
There is £6.5 billion going to be brought in each year by cutting down tax evasion. Really? All parties say they will do this, none ever deliver. There are £2.5 billion of "other savings". Hmmm.
Then there is the £19.4 billion that will be raised by hiking corporation tax to 26% just when countries across the globe, led by the USA but including even France are slashing corporation taxes. Mason/Atwater assume that in a world that is increasingly mobile, firms will just stay in the UK and cough up tax at 26% as opposed to, say, 15% in the USA. It is not going to happen. Firms will leave.
There is £1.6 billion going to be raised by levying VAT on private school fees. A 20% hike in what folks pay will cause some folks to leave the fee paying system and, probably, that will see some of the more marginal schools closing. Mason and Atwater assume all public school kids are Lord Snooty whose parents will just pay up automatically. It won't be like that.
There is £3.7 billion coming from increasing CGT and IHT. Mason and Atwater, of course, assume that all good citizens will line up and pay. Just like they did in the 1970s. Oh sorry for pointing that out. They did not then and they will not now. CGT and IHT are both double dip taxes, that is to say you are paying taxes on assets bought with taxed income so they are inherently unfair and every time a Trotskyite like Mason, Semtex John or Comrade Atwater hikes such taxes some folks find legit and illegit ways of ducking them.
There is £6.4 billion coming from a higher income tax on the top 5% of earners. Those would be the folks who are probably most able to "arrange their affairs" to avoid punitive taxes. Ditto the £1.3 billion levy on fat cat pay.
All of this package sends a signal that to work hard and get rich does not pay in Corbyn/Mason/Atwater's Britain. But the worst crime is that it will not stack up. The UK already has a budget deficit of £52 billion and unsustainable levels of National Debt. Both would clearly get worse under Labour.
Atwater thinks that the musings of commie Mason will change the way the country votes in three weeks. Dream on Comrade. For starters no-one outside your narrow circle of metroplitan elitists in Central London reads or listens to Mason anyway. And those fools are already backing the coalition of chaos.
That Labour will get thrashed is a given. The economic madness it proposes is a reason to celebrate that thrashing.
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