Tax take and Covid
There is a massive debate in the UK about debt, spending and needs, but in one respect the debate is almost silent and it is silent on the main point.
Covid has revealed whole sectors of the UK that are massively under-resourced, elderly care, the NHS, local government, Civil Service resilience and education for a start.
The problem is and always has been that the UK won’t tax enough. It tries to run a European style safety net with a 3% lower tax take. UK’s tax rate of 33.3% of GDP is high by its standards but low by similar economies. The government swears to never increase taxes at elections and then has to cut and cut again to make ends meet.
But such is the myth surrounding Thatcherism that any attempt to tax more is met with howls of outrage. The latest ploy to pay for care by increasing NI contributions was met with massive approval ratings from OAPs; who don’t pay NI.
If you want a well funded NHS with spare capacity, good infrastructure, schools and care, you have to pay for it. Selfishness is nationally damaging but no one cares so long as they pay less tax.
Economics, trade and Brexit, not necessarily in that order but the dog always comes first.