Thursday, 22 April 2010

Capitalism Works, part2

I've just spotted this historical post at Burning Our Money. Looking back over the Lawson years, it notes that:
In the six years of Lawson's Chancellorship, 3 million new jobs were created. But the number of taxpayers only increased by one million. Lawson had increased the real inflation adjusted value of the personal tax allowance by 15%, effectively lifting 2 million of the low paid out of tax altogether.
And what has happened since then? Do tell...
Well, there are another 2.2 million jobs. But unfortunately, the number of people paying tax has increased by 4.3 million. So all of those 2m low paid workers that Lawson lifted out of tax have gone straight back in.
Gosh, you mean to say that Labour policies are bad for the poor, while Conservative policies are good for the poor?


Of course they are. I've been yelling this for years. Simple low taxes and a climate that encourages innovation and entrepreneurship creates jobs that lift people out of poverty while generating the tax receipts that enable us to help those that can't work. High and complex taxes and an attitude of "bash the successful, they can afford it" gradually saps the economy leading to more people out of work and less tax income with which to help them.

That is, in a nutshell, the Patently approach to economic policy. Now you have the historical evidence which proves I am right.


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