For without major tax rises and reforms, it is impossible to see how Labour will generate the levels of growth it has made one of its central missions when in government.
Growth comes from taxation now, does it?
The way to temper the inflationary effects of such spending is to tax spending power out of other parts of the economy where it is less needed: most obviously from the wealthy. By raising taxes on capital gains or other forms of wealth while increasing public spending and investment, Labour has a good chance of repeating what Biden’s administration appears to have managed: a progressive deflation where the wages of lower earners are allowed to catch up with those of the rest, and growth remains healthy.
Jeez, what’s he effect on rich folk consumption of higher tax upon assets? Possibly nothing – therefore it won’t curb inflation, will it, genius?
The effect of higher tax upon assets is likely to be the same as raging inflation with negligible (=negative “real”) interest rates on savings – i.e. an increase in consumption before prices go up/the unspent money is taken away/stolen from them. Hence it will exacerbate inflation.
It’s all so easy – simply increase tax rates and look at all the lovely money that rolls in….or not:
https://www.forbes.com/sites/jonhartley/2015/02/02/frances-75-supertax-failure-a-blow-to-pikettys-economics/?sh=ff8e6e65df26
To my simple brain Labour (or Cons in the unlikely event that….) have three choices don’t they? Increase taxes, increase government borrowing or cut government spending.
Do we think anyone will be honest and open and explain their plans?
I don’t think they can raise taxes.
They can raise tax rates sure, but we are now so far up the backside of the Laffer curve it will drastically reduce the tax collected.
Why bother going to work (officially) if it all goes in tax?
it is impossible to see how Labour will generate the levels of growth it has made one of its central missions when in government
I mean, duh.
What part of “Net Zero” does this retard think means “growth”?
We’ll get “growth” via importing over a million migrants a year and then deficit spending tens of billions to house, feed and clean up after our new pets.
Also, the people who actually produce goods and services that people actually want won’t be able to sell their wares because people who are being taxed to the hilt won’t have any money.
I contend that for a nation to try to tax itself into prosperity is like a man standing in a bucket and trying to lift himself up by the handle.”
― Winston S. Churchill
“Labour has a good chance of repeating what Biden’s administration appears to have managed.
And if that appearance changes?
But wages in USA are not rising to catch up with the rich. That’s why so many ‘mericans are so angry.
But wages in USA are not rising to catch up with the rich.
Huh, weird.
Nothing another 100,000,000 Guatemalan hill-serfs and incompetent Indian H1B’s can’t fix, mind.
Following on from Addolff’s link to Forbes:
“France’s experience with its 75% supertax and declining tax revenues also confirms recent research on the Laffer curve by Federal Reserve Bank of St. Louis and Georgetown economists that estimates the tipping point where higher tax rates cause declining tax revenues begins at a 52% marginal tax rate.”
Does that 52% include ALL taxes? Taxes like NIC that aren’t really taxes, oh no, of course not.