Labour – Same Old Big Tax Big Waste

The Labour leadership election campaign shows the party regressing to its core big tax big waste mantra. High tax high spend or low tax low spend are really just different ways to the same end. Some countries, such as Scandinavia, have a high tax system but in return everyone gets the benefit of good services across the board. Another way, like in the USA, is for low tax with lower state provision, so the money people keep for themselves from lower taxes they can spend for themselves. Neither is inherently better or worse, as each can democratically chosen deliver a healthy society. But the Labour leadership campaign on tax seems to be going back to their old style big tax and big waste. The party is still perceived as having made the financial crisis so much worse by its waste. The Labour party seemed for example to have an obsession with PPI, private finance initiative, to lease a new a school or hospital. This gave Labour a seeming saving in year 1, like off balance sheet financing. But only for the taxpayer to then have to pay many times over during a contact of 10, 20 or who knows how many years.

Eamon McNicholas
Tax Barrister, Accountant

About Eamon McNicholas

Tax Barrister, Accountant
This entry was posted in Tax and Accounting News and tagged , , , , , , . Bookmark the permalink.

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