Morning:
14°c
During the heady days of the boom, I used to opine regularly that the National Lottery was a tax on stupidity, the odds of winning the jackpot being so infinitesimal. But now the lean years are upon us, and the Government's pre-Budget report has brought home to me what I've always really known: all our taxes are a tax on stupidity.
Mandelson, Brown and Darling clearly think that the entire electorate is more credulous than the dimmest of card-scratchers. That's why they believe knocking 2.5 per cent off VAT and doling out a few quid to low-earners will boost the flagging economy. Ah! If we let those proles have a little more take-home dosh they'll take it straight out again to Topshop. Then there are business tax cuts, plus the "Easy, tiger!" cry to the excise men, warning them to lay off cash-strapped small businesses. The Government is claiming all this will whack £20 billion into the economy.
And then there's the 5p tax hike for the high rollers on £150k or more. This last measure is the clincher when it comes to exposing the Government's contempt for the electorate. Obviously - its reasoning goes - dumb Britons will believe that this measure will punish the fat cats who got us into this mess in the first place; they won't notice that it only brings in a fairly piddling extra £2 billion to the Exchequer's coffers.
Well, most Britons do understand this much: that anyone who's earning more than £150k and who wants - perfectly legally - to swerve their taxes does so. You can close loopholes until the EU-subsidised cows come home but the seriously rich will still be seriously comfortable with not paying their taxes. The 5p hike may hit some honest upper professionals who really believe in the social contract but the jackpot winners in the City long since squirrelled their nuts away.
Because that's the problem with our attitude to tax: we might not like to admit it but apart from a scant few decades in the 20th century, Britons have never had any general belief in progressive taxation. Meanwhile, the political parties have either tacitly (Labour and the Lib-Dems) or overtly (New Labour and the Tories) supported the general view that progressive taxation is a monstrous imposition.
The Prime Minister and his Chancellor should stop talking down to us. Raising taxes for the rich and cutting them for the less well-off is a perfectly legitimate way of paying for the things that everyone values: decent schools, hospitals and safety nets for pensioners and those unable to work. The trouble with these tax cuts is that they're aimed at persuading some people to buy consumer goods, while the people who got rich flogging them escape scot-free.
Heavyweights in the House
To the Royal Opera House for a superlative production of Richard Strauss's extreme psychodrama Elektra. What a treat to see a piece of theatre about female psychology, acted by a predominantly female cast, and — despite being composed by a man, and written by a male librettist — with no sense of condescension.
The only dissonant note came when chunky Orest sang to his persecuted sister Elektra, “Your cheeks are hollow”, when the truth was that they were decidedly plump. Indeed, the significantly overweight Elektra was trim compared with the
markedly obese Klytemnestra.
Why is it that opera singers remain the only high-earning professionals — apart from Sumo wrestlers — among whom such excessive embonpoint remains de rigueur? There's no real evidence that it helps them to sing any better. Perhaps, given that as a rule the wealthier you are, the thinner you are, the fatties on stage at Covent Garden were only providing us svelte audience with a little Schadenfreude to go with our Sturm und Drang.
Ségo's simply one of the boys
As Laurence Sterne so justly observed, “they order this matter better in France”. By which I mean the matter of political ambition.
In ghastly, chauvinist Britain the childishness and vanity of overwheening political ambition are confined to men, but in La Belle France there are absolutely equal opportunities when it comes rampant and useless egotism.
Take the current furore between wannabe Socialist Party leaders Ségolène Royal and Martine Aubry. So far as I can see there's not a fine mist of Chanel No5 to separate them on matters of principle or ideology, yet there they are, slugging it out with bitterness and invective, just like the boys. Formidable!
Reader views (14)
Will
I was moved to seek out this site after your performance on Newsnight last night where I found most of your views on the economic situation almost spot on.
Your point that we are being encouraged to just spend more in shops on buying foreign manufactured goods to kick start the economy was correct. If anything highlights what is now wrong in our economy it is this. Surely we need to create a better balance of manufacturing, finance and services to be succesful in the future.
Your views above however on taxation I disagree with. As for Blis in NY calling for a return to 92%tax, I almost cried out in disbelief. Do people not remember the 70s and the economic basket case we had become? Why should someone who goes out and works hard, creates wealth and employment be penalised for their effort? We are going to need that type of spirit and endeavour by the lorry load over the next few years.
It would be far better to reduce taxation on earnings and encourage people to work and create wealth. At the same time we need a radical shake up of the welfare system in the UK. A system that has created generations of people who see it as a lifestyle choice rather than a safety net. Over the past 10 years at a time of big expansion in employment we have seen the majority of those positions filled by people from abroad. It is a crazy and unsustainable sistuation that we think we can pay people to sit on their backsides doing nothing and let in ever more numbers of immigrants.
- Wayne Reid, Leicester
Here, here, Will.
We're having the same problem here in the US. We need to get back to the post-WWII tax rates of 92% for millionaires, as it was back in 70's UK also. The so-called Democratic governor of NY would rather beg the Federal government for a handout than hike the taxes of all the richest of the rich, cutting funding for poor childrens' dental clinics and the like in the meantime.
Higher tax rates equals economic growth, low taxes equals more for the rich.
- Bliss, Brooklyn, NY
Sir - I would find the utter rudeness and inaccuracy of your comments about singers in the ROH Elektra quite laughable if it weren't for the fact that such things are damaging to the whole cause of a wonderful art form and, more importantly, to the artists in question. There was one singer who falls into your catagory of markedly obese but the 2 others mentioned (thankfully not by name) are most definitely not significantly overweight. The generalisation that most singers are fat is so out of date that I can only assume that either you sleep through shows you attend so don't actually see the serformers or you have a very odd idea of what constitutes 'fat'. Grossly overweight singers rarely find employment these days- certainly in the UK and you will find that a significant number of singers spend several hours in the gym each week due to the physical demands made upon them by directors. Please look through cast lists carefully and make a note of 'fat' v trim , healthy weight, fit singers - I am sure that latter will be a lot longer than the former.
Yours,
DH
- Dorothy H, Suffolk, England
And Charlie, capitalism is the most efficient system of wealth creation ever devised, because it devolves power from the state to the individual. I notice that you didn't try and refute my argument, you merely resorted to putting forward an opinion. If you're trying to prove a point, provide some statistics that justify your ludicrous claims.
The hypocrisy of the left is laughable. They claim to be in favour of state ownership, and they resent big business, yet most of you use the internet, paying BIG BUSINESS for a service. That is capitalism, you pay for a service, and the more that service is in demand, the cheaper it is for the consumer. Hence the rabid price cuts between supermarkets this Christmas. They are trying to attract customers. I pity you if you think a world in which people have the freedom to do what they want within the confines of the law is boring. I suppose your utopia is Stalinist Russia. Forgive me for stating I hope we never have to live there. I hope my assumptions are misguided.
- Josh, Doncaster
To Charlie and NickB, a champagne socialist, or Bollinger Bolshevik, or Limousine Liberal, whichever floats your boat, is something to perfectly describe Will Self and his followers, and by extension, those who support the failed ideology of socialism. Taxing the rich is a pointless exercise in political manouvering, designed to gain the support of those with three brain cells or less, principally socialists. Social justice is letting people keep the money they have worked for without it being taxed. When Nigel Lawson reduced the top rate of tax from 60% to 40%, tax revenues actually increased because the wealth creators of the country didn't leave for lower tax economies. People should have the choice. If somebody wants to give their money away, then that is their choice. If the state forces them, they are being victimised for being sucessful, and is their a great demonisation of success than taxing the rich? You mention the Scandinavian countries. They operate export based market economies. Denmark tried adopting the Nordic Model Welfare state, and their economy was subsequently destroyed, as high unemployment, high inflation and low GDP sent their tax receipts down the hill. They introduced various market based reforms in the 90's, and despite a very high tax rate, they have a very free economy.
- Josh, Doncaster
Good analysis Will, nothing champagne socialist about it at all, simple social justice. The detractors (and can't they think of a less cliched metaphor than champagne socialist) should have a look at the scandinavian countries - many of whom seem to be economically more successful than Britain and have a far more progressive taxation system and progressive society in general. It's time to show up the finance sector and related right of the city and south of england for the bunch of self-righteous parasites it is.
- Nickb, southampton UK
Dear Josh, maybe if the government had raised taxes to improve spending on education, you'd have learned how to punctuate correctly. I find it hilarious that you parade 'lesbian outreach officer' as an example of superfluous job creation by the left when capitalism is founded on utterly pointless and money-wasting occupations - particularly in the banking system, where vast armies of idiots spend their days moving around imaginary money. But most importantly of all, the world you describe in your post sounds utterly BORING, and I hope we never have to live there.
- Charlie, Soho
Is champaigne socialist the same as white wine liberal? At any rate, this guy wants to make everyone equal by making everyone poor. No wonder successful Brits immigrate!
- Ron C Clair, Sarasota, Fl., USA
Typical left wing drivel from a typical champagne socialist. What is needed is a flat tax, on middle and upper income bands, and take the poorest out of the tax system altogether, funded by temporary cuts in public spending. We have a sclerotic public service sector, bloated by ''Lesbian Outreach Officers,'' etc. Cut these pointless jobs, and transfer capital from the pointless and inefficient public sector and pump them into the private sector. This will create real jobs that benefit the economy. If you increase taxes on the rich, who are the businessmen and women of the country, it will force them to make their workers redundant. If you cut taxes, they can expand their business, TAKING ON more workers, thus creating more taxpayers. With the tax cuts funded by temporary spending cuts, business expansion can take place with numerous tax breaks and permanent NI and VAT cuts. More taxpayers increase revenue. It would be unfeasible and undesirable to bring back spending to it's current levels, but if you cut quango's, bureacracy, the ID card system, other surveillance schemes, the NHS IT scheme, efficiency savings, you can save approximately £100 billion, without hurting health and education spending. Of course, it is easy for people like Mr Self to promote the filth of socialism because he is rich enough to cope with massive taxes, unlike those who live in working class areas like me, who have aspiration and ambition. We need capitalism, not champagne socialism.
- Josh, Doncaster
You seem to have missed the most important point Will. The banks were admittedly playing fast and loose with shareholders money, but who was borrowing it all? Who grabbed those easy to obtain mortgages in the hope of a quick buck? Who maxed out their credit card living a lifestyle they well knew they could not afford? Who took out loans at low rates with scant thought to how they might be repaid? It takes two to Tango and we have all been leading a merry dance, but now it's time to pay.
- Mark, London
That's right, Will, squeeze us til our pips squeak! - And then watch us emigrate! Result? Without wealth creators there will simply be no wealth. - Do us all a favour, Will, change your Long-playing Marxist record and go back to writing your obscure nouveaux romans, which we all know and love (not to read).
- James Murphy, Petersfield
Tax the rich? Presumably that would include your good self.
- Charlie, London
When the conservative government cut top rates of tax, the revenue increased. Don't be fooled - taxing the rich only drives them away or spurs massive avoidance schemes.
PS - my household income is below £50,000 - I only want to see sensible tax policies, and I'm not much affected here.
- Ian, london eng
Before you start confiscating other peoples' property Mr. Self you may wish to know that if you bother studying (yes, in some countries people still do this in the belief that it is required to better yourself, earn your way through life and contribute to society) you will find that lower tax rates lead to higher tax revenue. I will not bore you with the details as everyone in the UK that I have met who does not see anything morally or ethically wrong with confiscating others' property at grotesque levels is not really interested in facts or fairness but rather envy of others, no doubt the result of centuries of being at the bottom of a class structure. Can you think of a reason why the UK has continued on a long decline since WW2 (with the exception of 20 years of fake prosperity financed by the debt you now have to repay to the reset of the world)?
- Kr, Florence Italy
