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Wanna Argument?
Taxes - to cut or not to cut? That is the question
The debate about the level of taxation has been brought into sharp focus by the announcement by the Liberal Democrats at their Autumn 2000 conference that they propose to increase taxes to pay for improved public services. This 'tax and spend' approach contrasts sharply with the Tory promises of further tax cuts in the future. Labour have traditionally always been seen as a
tax and spend party, but have backed away from this in their years in government. So why the differences? Below are a series of arguments over taxation. Follow the link below each argument for more detail on the economics and business theory that underpins it.
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If I vote Labour or Liberal then I am voting for increased taxes, but the Tories will cut my taxes. Why should I vote to pay out more money? |
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Yes, but what about all the benefits you get from the tax you pay? They're not free, you know. |
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Public goods and private goods
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The government spends lots of money on providing services that could be provided by private companies. I should be able to choose what I want to pay my taxes for. |
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Private companies may not provide enough of these services though. They will only provide services if it is profitable for them. They won't provide enough for society as a whole. |
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Providing goods on merit?
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The Tories will cut taxes but provide better public services so I'll vote for them. |
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Labour will cut taxes and provide better public services so I'll vote for them. |
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Who is cutting what?
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If they cut my taxes, then I'll work harder and that will benefit the economy. |
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If they cut my taxes then I can do less work for the same amount of money. |
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Work to live, or live to work?
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The government should cut taxes to encourage people to spend more and help the economy grow. That way they will get more tax anyway. |
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Cutting taxes would be inflationary if it is done at the wrong time, and so the government should avoid it. |
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Supplying the demand or demanding the supply?
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I'm a bit lost with all this - who's telling the truth, the whole truth and nothing but the truth then? |
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Well, probably none of them - they all just give us the information they want us to hear! |
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Who's spending how much, when and on what?
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