What is the best way for people to escape poverty? By reading the press in the UK at the moment, it would seem that the best way would be too lower the tax on the poorest people in the country and increase taxes on the wealthy. Lowering taxes for the poorest is a good thing and would help them to climb their way out of debt, but taxing the rich more? That is not a good idea. If you want to know what taxing the rich does, just ask France.
France has a hate tax of 75% for top earners. Since it has been implemented a significant number of wealthy people and successful entrepreneurs have fled the country, and most have ended up in London where tax is lower. The media always fail to realise that it is the people with spare money who are the ones who create the jobs (And not just any jobs, but productive ones unlike government services).
All of this has lead to the owner of Iceland talking in the the media today defending his wealth:
The media have made negative comparisons between your wealth and that of your customers. Does that bother you?
Why is it an issue? My personal wealth is nothing compared to the wealth we’ve created. My hunger for business has resulted in 25,000 jobs and £600m in tax contributions in the past six years alone.
No one should have to defend their own earnings. Especially when they have used the spare money they had to start a successful business that employs thousands of jobs.
If the tax on the wealthy was even lower than it is now, it would mean they would have more money to plow into the economy, creating prosperity and jobs. Additionally, this lower tax rate would attract other entrepreneurs from across the world to the UK. The graph below shows the top tax rate and federal income from 1930 to 2010 in the US. It shows revenues can increase when the rich are taxed less because the economy becomes much more productive.
You may argue that with all these tax cuts, that the government would have to reduce in size, effecting local services. I have always believed that government should be as small as it possibly can be and local services can be, and should be run by the local people, not the bureaucrats controlled by MP’s and Lords in Westminster.
The United Kingdom is no longer a democracy.
What is the definition of a democracy? I don’t normally cite wikipedia but I thought their definition was apt:
Democracy is a form of government in which all eligible citizens participate equally—either directly or through elected representatives—in the proposal, development, and creation of laws. It encompasses social, economic and cultural conditions that enable the free and equal practice of political self-determination.
Political self-determination. Such an elegant way of saying that the people of the country should determine their own destiny.
So what if I told you that the UK is no longer a democracy. That it instead transfers the majority of its powers to Brussels (EU). You would probably argue that I am wrong because even though EU law overrides a vast number of UK laws, we do elect MEP’s who are our representatives.
What is the most important role of democracy? It is the ability for the people to remove any representative in power who they don’t agree with as a majority. The fact that not one single taxpaying citizen in the UK can remove any of the european commssion members is why we no longer live in a democracy. We have no control over the rule makers.