The Big Idea
pauldburgin Fri Feb 15, 2008 at 10:23:26 AM GMT 
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How Labour needs a fresh initative in their 11th year in office.
One recent conclusion I have drawn in the past few years is that any political movement that spends a long time in power must renew itself in order to remain fresh and exciting. We saw something of this happen when Gordon Brwon took over as Prime Minister, but now we need to grasp a big idea that will help the country in the next year or so. One that will financially benefit the working and middle classes in the face of a wobbily global economy.
In yesterday's Independent, Steve Richards spoke of the Tories' consistent calls for tax cuts being an election loser and he is right. For many years the Conservatives would bring forth low taxes at the expense of public services until the electorate saw what was being done and booted them out of office. The fact still remains however that we cannot afford to penalise middle or low income earners, and also have decent public services, not without borrowing at any rate! The proverbial Catch 22 of economic politics.
But it's only a Catch 22 situation if we ignore putting forward a high rate of tax for the wealthy. Of course that in itself is fraught with dangers as the moves abroad in the 1970's of high paid film stars, musicians, etc.. showed. However this is not the 1970s.
What is possible is to introduce tax breaks for both middle and low income earners, and steadily increase the rate of tax for high income earners, but only about as far as 60% at the absolute max. That money will then be directly used for health and education above other departments. In addition we need to set up some cross-party consensus on the issue (esp from some of the Lib Dems) and build up a campaign to point out the benefits of helping not only those less well off, but also protecting those who earn less than £100.000 per year.
Dangerous yes. Risky yes. Esp when we live in a culture of individualism and self interest above helping others, but if we don't help change attitudes as well as policy on economic issues, then we are in trouble. Any political party that wants to hold onto power for a long while need to be brave.
In yesterday's Independent, Steve Richards spoke of the Tories' consistent calls for tax cuts being an election loser and he is right. For many years the Conservatives would bring forth low taxes at the expense of public services until the electorate saw what was being done and booted them out of office. The fact still remains however that we cannot afford to penalise middle or low income earners, and also have decent public services, not without borrowing at any rate! The proverbial Catch 22 of economic politics.
But it's only a Catch 22 situation if we ignore putting forward a high rate of tax for the wealthy. Of course that in itself is fraught with dangers as the moves abroad in the 1970's of high paid film stars, musicians, etc.. showed. However this is not the 1970s.
What is possible is to introduce tax breaks for both middle and low income earners, and steadily increase the rate of tax for high income earners, but only about as far as 60% at the absolute max. That money will then be directly used for health and education above other departments. In addition we need to set up some cross-party consensus on the issue (esp from some of the Lib Dems) and build up a campaign to point out the benefits of helping not only those less well off, but also protecting those who earn less than £100.000 per year.
Dangerous yes. Risky yes. Esp when we live in a culture of individualism and self interest above helping others, but if we don't help change attitudes as well as policy on economic issues, then we are in trouble. Any political party that wants to hold onto power for a long while need to be brave.
The Big Idea | 3 comments (3 topical)
The Big Idea | 3 comments (3 topical)
