To Tax Or Not To Tax

Submitted by Looking Glass

Theories like ideology are “rooted in the material conditions of life, but despite what we are led to believe or want to believe there is no unilateral or universal relationship between the…the relations of production and the political and legal superstructure. The structure of society exerts a determinative effect upon the ideas which assume prominence.

Economics like self-interest is not morally neutral. Economic estimates premised on the broad generalizations contained in “rational behaviour” simply cannot account for the plethora of ambiguities inherent in the human species. For this reason estimates could result in over-optimistic conclusions and misguided policies. Some people suggest business tax-cuts, concessions and cuts in personal income tax are needed to resuscitate the economy.

Proponents of tax-cuts, essentially those favouring the supply side economics approach, view them as positive and necessary. Tax-cuts they maintain enable people and business to put in more effort, work harder, save and invest more at home. As the economy grows there will be more income and profits to tax. This would allow government to recoup revenue lost through the initial tax-cuts and facilitate deficit reduction. In addition it would induce people to change their behaviour in ways appropriate and beneficial to the society. But will tax-cuts and concessions lead to economic growth and employment?

Are The Rich In Barbados Paying Their Fair Share:- Defining Rich As Those Who Earn $1Million or more!!!

Tax the rich was a theme raised last week at the Liberal Democrats conference in Bournemouth, UK where Dr. Vine ‘the oracle’ Cable purposed a new tax on those who earn in excess of a million pounds or more . Dr. Cable raised some eyebrows in his own party as this policy decision had not been discussed with its leader (Nick Clegg).

A report by the Brotherhood of St Laurence and the Australian Housing and Urban Research Institute showed that the Capital Gains Tax (CGT) exemption is now worth on average $10,000 a year for the wealthiest 20% of home owners according to The Australian News report.

The Brotherhood of St Laurence will today seize on the research to call for the removal of the CGT exemption on homes worth more than 1.1 million Auzzie dollars. I wondered if this was where Dr. Cable pulled his policy decision from last week?

It is with these thoughts in mind, coupled with Channel 4’s airing of Piers Morgan’s visit to Barbados to interview Sir Cliff Richards in his £14 million hideaway pad in the lush surroundings of Sugar Hill that got me to thinking about this issue in its broader remit and context.