The penny has dropped, here we are searching for justification for these Labour Party policies on economic grounds and struggling to find them. The reason why it is so difficult for economists and political commentators to demonstrate that these socialistically inspired policies would not raise the monies that Ed Balls is suggesting is that they don’t need to raise any money at all.
In fact, by way of illustration, the Treasury themselves have carried out independent assessments and have found that 45% high income tax raises more money than 50%. Why then is the Shadow Chancellor promoting the latter?
Why is he promoting Mansion Tax when it is likely that property prices could cascade downwards by up to 50% and cause a full-blown self-engineered property slump? The answer is simple, it is part of the sustained tactics of the Labour party to engender a class war.
Was M. Hollande aware that his draconian 75% Tax Regime (proposed when he was electioneering for President) would cause a stampede of wealth creators from France – of course he was but if it helped him get elected then it was worth its ‘weight in gold’ to him. For France, it was another ‘nail in the coffin’ since these are the very individuals who should be incentivised to build businesses, employ people and build the French economy.Sadly, I wish the British electorate saw this social cynicism for what it is. It is barefaced electioneering and its treats people like idiots.
I know that no political party is perfect but surely this manipulation of the mind and goading of class war has to rank amongst the lowest form of tactic.