Labours Magic Money Tree

Magic Money TreeThis alleged proof of Labours sense just convinces me they are actually as mad as a box of frogs.
Ignoring that a “fat cat” tax is to my mind immoral, and that reducing inheritance tax isn’t a give away it’s letting people do what they like with their own money – unless you think that everything you own belongs to the state at the moment of your death.
Charging VAT on private schools is also daft as people going to private schools are still paying in taxation for state schools they’re not using, the more people that pay for private education the more funds for state education we should be encouraging it as people opting out of state education will always save more than VAT on that opt out.

Tax avoidance isn’t illegal it’s following the law, they possibly meant tax evasion – but in either case either simplify the tax code or face the fact that governments are always trying to cut down on tax evasion and it rarely improves. Ditto with closing tax loopholes – I don’t believe that Labour are promising to simplify the tax code so this is the same Sisyphean task that every government says they’ll tackle.

So that leaves increasing corporation tax, increasing income tax, taxing offshore property and a robin hood tax .Which are far smaller targets.
Corporation tax is eventually paid by customers or shareholders (such as pensioners and investment funds) – so it might bring in more money for the state (which is arguable) but it’ll make us all worse off in the meantime.
Increasing income tax on the top 5% will probably see a shift in behavior and so not raise as much as is hoped and also again I’d question the morality of it, the top 5% already pay a high proportion of the taxes and bringing them ever closer to paying more in tax than in earnings again isn’t going to encourage anyone to have an income in the UK.
Tax on off shore property – the people most likely to be hit by this are those with holiday homes, people with serious property holdings will move them around and they’re likely paying local taxes on those properties already – how is it moral to tax something which costs this country nothing?
As to the robin hood tax far more informed people than I have already demolished this idea and it’s really a sure-fire way to destroy the UK’s financial industry especially when it’s allegedly already on the ropes due to Brexit.

So in summary Labours money tree is either impractical, immoral or ineffective.

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