TPA response to Tory tax plans: "Stop Erring"
This morning the Conservatives published the Economic chapter of their manifesto. Much of it is good. They criticise Labour's 66 tax rises (without mentioning Tim Yeo's pledge to introduce the proposed EU aircraft fuel duty); they lambaste the 60% increase in spending on running government since 1997; and they include a useful chart showing how low tax English-speaking countries enjoy higher growth rates than high tax Euro zone countries. "The lesson is clear," they write, "low tax economies grow faster than high tax ones."
The problem is, they do not propose any policies that would move Britain towards becoming a low tax economy. Even the wording of the manifesto betrays this. The five point summary of their economic policy commits them to "create a lower tax economy" (p2 of the pdf) and Michael Howard's introduction talks about "value for money and lower taxes" (p3). There is a big difference between 'lower taxes' and 'low taxes'. The Tories should cut out the erring and propose more substantial tax cuts to create a low tax economy.