Think-tank calls for radical tax reforms
Monday 24 July 1995
As part of this, governments would "eschew the drift towards more arbitrary and retrospective taxation" - exactly the grounds on which the removal of capital gains tax relief on executive share options has been criticised.
After a weekend in which Treasury ministers and officials met at Chevening, Kent, to start planning the November budget - in which tax cuts are widely anticipated despite heavy Government borrowing - Demos warns of the danger of repeating the fiscal errors of the late 1980s and early 1990s. "While the Conservatives look likely to promise cuts in taxes without the will to cut spending, Labour will be tempted to promise public spending increases without the will to raise taxes."
The authors of the pamphlet, Taking Tax Out of Politics, Sir Douglas Hague, former economic adviser to Margaret Thatcher, and Geoff Mulgan, former adviser to Gordon Brown, warn that without radical reform, "excessive borrowing and fiscal fragility" is likely under both political parties.
A package of measures is needed to put tax policy on a sounder footing. Demos believes both parties should accept a broad target of government expenditure at 40 per cent of GDP. Treasury forecasts put the ratio for 1996 at 42 per cent.
Cutting the middle class welfare state is the key way to achieve such cuts. The authors call for fees for a number of public services, including schools, universities and health.
- 1 Rowan Atkinson to sell £10 million McLaren 'supercar' he crashed into a tree and a lamppost
- 2 The truth about 'girl things': Three cheers for Heather Watson's honesty
- 3 Man who held up 'hire me' sign at Waterloo station returns a year later with 'I'm hiring' sign
- 5 Men behaving badly: Urinating while standing, 'manspreading' and the gendering of selfishness
Man who held up 'hire me' sign at Waterloo station returns a year later with 'I'm hiring' sign
Edgar Froese dead: Tangerine Dream founder dies aged 70
Saudi preacher who 'raped and tortured' his five -year-old daughter to death is released after paying 'blood money'
Syrian refugee child beaten by Istanbul Burger King manager for eating customer’s leftover food
Iraq invasion 2003: The bloody warnings six wise men gave to Tony Blair as he prepared to launch poorly planned campaign
British Muslim leaders outraged after Eric Pickles says followers of Islam should 'prove their identity'
UK terror fears: My jihadist son returned from Syria mentally scarred – now he is being ignored
Nigel Farage: NHS might have to be replaced by private health insurance
Billy Crystal: 'Stop shoving gay sex scenes in my face'
'We would evict Queen from Buckingham Palace and allocate her council house,' say Greens
French court convicts three over homophobic tweets, in case hailed as a 'significant victory' by LGBT rights campaigners
Excellent Salary : Austen Lloyd: OXFORD - REGIONAL FIRM - An excellent opportu...
Super Package: Austen Lloyd: BRISTOL - SENIOR CLINICAL NEGLIGENCE - An outstan...
£15000 - £50000 per annum: Recruitment Genius: Fantastic opportunities are ava...
Negotiable: Recruitment Genius: A Compute Engineer is required to join a globa...