TwoSheds
More sheds (and tiles) than you, probably
- Joined
- Feb 12, 2014
- Messages
- 13,822
Sacking every single manager in health, education, civil service, defence, police etc would certainly be one idea!
However you have to ask if every manager is failing simultaneously whether it's the lack of incentives that's the root of the problem, rather than thousands of people being coincidentally incompetant.
Where is all the money coming from to set up completely new infrastructure so that public bodies don't have to rely on private companies (which they've been doing for decades)? Likewise to invest in infrastructure? Presumably growing the economy also requires a chunk of governmental spend, given that you're taxing wealth creators more in your manifesto which will cause an economic contraction that would need offsetting? Tax is already at it's highest and most distributive for decades so will hammering the wealthy further actually raise more funds or will it kill investment and end updoing the reserve? Bear in mind that if the top 10 richest people in the UK donated their entire net worth to the treasury; it would run the NHS for just over a year. You'll very quickly run out of the ultra wealthy and end up needing to hammer small and medium sized businesses, the middle classes and then the lower-middle, which is exactly where we are now.
Also how are we doing all this if we're reducing borrowing at the same time, given that the budget deficit is £100b and being spent on public services?
To not only stop borrowing more but to reduce the budget deficit conservatively lets say you're raising another £80b a year in taxes. Add on infrastructure and educational investment and you're looking at, what, another £45b so £125b total per annum? You start out by taxing every billionaire an extra £10m per year (£1.77b), you then tax the people who earn £1m+ per year an extra £100k on top (£1.9b). You then tax every single personal earning £150k+ an extra £10,000 per year (£6b). You not only increase corporation tax to 25%, but decide to triple that and go to 37% (£6.6b). You then go after the 4.3m higher rate taxpayers (£50k+), having them pay another £2500 (£10b). You also assume that this aggressive taxation has no detrimental effect on consumer spending, employment, business investment etc and are what less than a quarter the way there?
It's common sense that the 19,000 people earning £1m per annum, or the 177 UK billionaires are a drop in the ocean when compared to an annual budget of a 1000 billion and a deficit of 100 billion every year.
There is no way on earth that taxing the rich more causes an economic contraction. The fact is that accumulating wealth at the top is almost entirely economically unproductive (evidenced by the fact they get disproportionately richer every year so cannot be spending it) and bringing that money back into the "everyday" economy via taxation is the only sensible way to attain growth.
Taxing earnings is also not the only way to claw back obscene wealth, I'd be all in favour of a wealth tax, even if only as a short term measure to pay down some debt or pay for infrastructure projects / investment. I'd also be in favour of taxing some businesses differently - the big tech companies for example pay a very small fraction of their earnings as corporation tax because they have many ways to make the profit disappear to a tax haven. So either we could find ways to prevent the money ending up in the tax havens (the network of British-affiliated tax havens is extensive), or we could just find more ingenious ways to tax large companies who pay low tax rates e.g. tax revenue in some way or tax transactions.
Clearly investment doesn't work instantly so expecting government debt to drop instantly would be foolish, which is why I say the long term aim should be to stop borrowing. You'll note that the government's aim has (notionally) been to reduce spending to cut borrowing for the last 12 years and yet the debt has kept skyrocketing. Almost like you can't cut your way to growth, and actually public services have a great economic value.