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Growth policy

 
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Peter Fennell



Joined: 27 Sep 2007
Posts: 53
Location: London

PostPosted: Sun Dec 09, 2012 5:34 pm    Post subject: Growth policy Reply with quote

Raising the threshold for income tax is a step in the right direction. So would be a Mansion Tax.
Cutting costs and reforming welfare are needed no doubt but without policies for growth there will be cold comfort.
But scale back taxes on employment and growth will follow. Simple.
We may shudder to think of constitutional or family policy in the hands of Durantez and Clegg but Vince makes sense on the economy. (Actually pupil premium and Glass-Steagal may turn out not too bad either).
This is a personal view. The charity would not have a position. But any economist who follows Justinian - render to each his due - would have to acknowledge some credit is due here.

The notion that taxing employment stifles growth
Shettleston* has the highest unemployment in the UK since the demise of Glasgow's main industries: steel and ship-building. We might still have such labour intensive industries if labour costs were not artificially inflated. In 1984 coal mines closed that were 'uneconomic'. Would they be 'economic' if labour costs were not doubled by taxation?
Someone earning £25k gets only half that in goods and services (standard of living) and the rest goes in tax. Remove ill-judged taxes on employment and consumption and jobs could be created at half the cost.

Perhaps we could have back a labour intensive agriculture instead of the mechanised farming dependent on chemicals.
Architects could stop designing for machine-manufacture and buildings could have craftsmanship in them.
We could stop throwing things away because fixing (labour) is more expensive than replacing from highly mechanised manufacturing processes.
Instead of the profligate burning of fossil fuel and disposal of materials to save labour the economic incentive would be to use energy sparingly to enhance labour and reuse materials.
Instead of the nature of employment being mechanical, creative work would pay.
Remove taxes on employment and all sorts of business ideas could become economically viable that are not today. 4 out of 5 fail in the first year but maybe that need not be so.
Self employment, starting a business, would be viable not just for exceptional few but for the average person with an idea and willing to work hard.

*Unemployment in Shettleston. See: http://www.newstatesman.com/node/147532


Last edited by Peter Fennell on Sun Dec 09, 2012 6:04 pm; edited 1 time in total
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Peter Fennell



Joined: 27 Sep 2007
Posts: 53
Location: London

PostPosted: Sun Dec 09, 2012 6:03 pm    Post subject: Reply with quote

http://www.bbc.co.uk/news/uk-politics-20621313

Apparently most benefits go to people in work.
If taxes on employment push up the cost of employment, by the same argument, subsidies for the low paid such as housing benefit etc must effectively subsidise employment? Costing employers less to hire low skilled workers.
On the other hand it is probably a questionable claim because over half of welfare spending goes on pensions.
http://www.ukpublicspending.co.uk/uk_welfare_spending_40.html
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aahanif noor
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PostPosted: Fri Jan 30, 2015 7:10 am    Post subject: Reply with quote

Would they be 'economic' if labour costs were not doubled by taxation?
Someone earning £25k gets only half that in goods and services (standard of living) and the rest goes in tax. Remove ill-judged taxes on employment and consumption and jobs could be created at half the cost.
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