Labour Instinct Is Always To Hammer Business

Toynbee’s at it again, advocating taxes on the ‘rich’. Mandelson’s swinging Labour away from such controversy pre-election, aware that there are middle class votes to be lost with such policies.

This is what Toynbee writes –

“Mandelson is profoundly wrong and out of date to accuse others of “class war”. The 50p tax rate and tax on bonuses are not some “core-vote” strategy. Polls and focus groups prove them so popular that the Tories dare not vote against them. Mandelson’s claim that taxing the rich makes Labour no longer the party of “aspiration” is to grossly misunderstand the present mood. The decade-long deception that pretended mega-wealth could be “aspired” to by all is over: the real middle Britain, median earners on about £23,000, are not core-vote but the majority – and they have rumbled the rich.

Their aspirations have nothing to do with letting Rothschild and Deripaska incomes rip. Remember only 10% earn over £40,000. To have any hope of salvaging this election, Labour has to know whom as well as what it stands for. That’s not class war, that’s basic social democratic principle, and it’s good psephology. “The many not the few” is no retreat to a core vote.”

This is my reply –

The genuinely rich have by definition more money than they need. They can therefore send their money offshore. If you are rich paying tax is mostly voluntary.

Wealth creation is also voluntary. In the sense that it involves taking risks, which can be passed up, or taken up. If people want jobs they either have to create their own businesses, or find people to take risks on their behalf and employ them. Why would someone take a risk with their money and their time, which could all be lost, if they cannot keep more than half of what they earn, if they succeed?

50% Income tax plus employers and employees N.Ins is about 73% total tax. Tell that to any foreigner and they are shocked. 40% should be the maximum tax take all in, or people won’t bother making money and building businesses.

Speculation is taxed far lower. At 18% Capital Gains Tax still makes it worth making gains that way. Outright gambling or betting is tax free.

But for God’s sake don’t be so stupid as to make money by actually working for a living. That really seems to offend socialists.

They seem to cope OK with people rich enough to avoid work. In fact they quite admire them, or gamblers who’ve won big on the lottery. What offends them is seeing someone a bit like themselves who’s managed to make more progress than they have through honest work, coming from the same start point. They generally assume that the other person must have cheated in some way to get ahead, as a way to avoid the feelings of inferiority and unfairness that otherwise would seethe inside their souls. The one thing they are unwilling to contemplate, is their own lack of enterprise.

And then there’s IHT.

If an successful risk-taker keeps the measly 25% the government leaves them from their income, and contemplate leaving something to their kids, then that gift will be taxed at 40% all over again. You have exactly 15% left from what was originally earned. Why bother?

Better to emigrate to a country where enterprise is valued and rewarded. Or live on less.

It’s all just jealousy that makes people want the supposed rich heavily taxed. It will, though, impoverish the whole of society if such prejudice against the productive and the creative and the enterprising is allowed to inform rates of tax.

As I say, the rich don’t pay the taxes anyway. Only people who are on the rise have to pay the taxes, often people who are heavily borrowed, who are working every hour God sends, and who are creating jobs. These are the people the socialists want to punish.

People should not be jealous of such commitment, and demand it be taxed and stopped, but helped and encouraged. They should imagine one day their children might succeed in business,or their grand children, and not not try to stop others from getting on. A young person’s best years of health, and the knowledge they have absorbed might only enable them to last in such effort for ten or twenty years. Why crush such effort with taxes, when the whole of society benefits so greatly from it?

This is Britain’s biggest failing.

We would do better to become communists. At least in Russia and China people are able to build businesses without too much government interference (the corrupt pay-offs are bad, but then the entrepreneurs are heavily supported in return), and they understand that their countries need a strong industrial and commercial sector.

In Britain we hide money away in The City, and keep it out of sight, where the government can get their hands on it from their banking friends, who get huge bonuses for keeping quiet about the ridiculous risks we are all being placed under.

Why do we have to live in a casino, for god’s sake?

We have enough native cunning in Britain to succeed at whatever we choose. We just need to hurl all these Polly Toynbees over a cliff and we’d be back at the top once more in no time. Allow the people who lead and build to be rewarded, or let’s go direct to the gutter where the Labour Party wants us all to be, dependent on their handouts, unwilling and unable to do anything for ourselves.

The Tap Blog is a collective of like-minded researchers and writers who’ve joined forces to distribute information and voice opinions avoided by the world’s media.

2 Responses to “Labour Instinct Is Always To Hammer Business”

  1. Anonymous says:

    I am a young professional on a modest salary. I am in a pretty unique job and am gaining skills that you don’t really get elsewhere. My current plan is to stay in the UK for 1 – 2 years, ask for a transfer abroad (to gain better experience) and then consider my options.

    Currently, I do not think I will return here. I pay basic 20% tax but I do aspire to earn more than £38,000 thanks very much. Looking at house prices, a small house or flat will cost in excess of £160,000. Factoring in the required deposit of around 20 – 40% and the tax I will have to pay it will take me years and years to afford a modest place and decades to pay off the mortgage debt. If I want a family, I am looking at £200,000 + for a 3 bedroom house.

    With the new 50% tax rate, and the other taxes such as council tax, national insurance, energy tax, bin tax, car tax, fuel tax, flight tax, capital gains tax, inheritance tax, stamp duty, ad nausea. I don’t really see the incentive to stay here. Perhaps I would if the quality of life was good here this would not be an issue. However, the authoritarianism and loss of civil liberties, along with the thought crimes and the arrogance of so called “public servants” means there is really no point in wishing to settle in what is, at best, a bottom – ranking nation and at worst, a second – world tinpot dictatorship.

    I am not alone, my generation is young and ready to make a success of ourselves but how we are treated will determine if we do that here in the UK, or elsewhere.

    PS. Tonybee earns multiple the amount I do, yet I don’t feel envy toward someone worth more or earning more than myself unlike her. Instead I think I need to do better and step up more to get my self in that position (within what I want from life, which is not just cash, but a good place to live and settle along with some nice assets).

  2. tapestry says:

    It is sad to read that, but so true. The young have all this shit heaped up in front of you. I am 55 and at least had the chance to build a business when I was young untroubled by the powerful state which know breathes down your neck.

    I have been living overseas four years, in a third world country, where renting a big house in the best area cost £500 a month. But you need a good salary from an international employer as local salaries are not great.

    In Britain you need to be patient, get the wife out to work and have a double salary, or have help from family, or both – or get into the corruption business, which must be soul destroying.

    Two possibilities.

    There might be a really good recession coming which will smash house prices down to the level of affordability, so that afterwards things make more sense. Politics might swing away from the thought police environment, and building business might become possible and supported again, as it was under Thatcher.

    Only when you leave Britain will you be able to decide which is right for you – going or staying. All countries have their problems.

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