The problem with nails
As the old saying goes “to someone with only a hammer, every problem looks like a nail.”
The problem for the Tory party at the moment is not only do they have a hammer, it is a hammer of their own creation. So, after the two worse by-election results in living history the answer seems to be to cut stamp duty. Because stamp duty is unpopular and cutting taxes is the Tory party’s answer to all problems.
But this solution has emerged from a completely mistaken memory of what Margaret Thatcher actually did when in power.
Mrs Thatcher actually increased taxes, as a percentage of GDP they rose, in part because of huge rises to income tax and VAT when she got into power and then because of the huge tax revenues from North Sea oil and gas.
The tax cuts that Nigel Lawson introduced were funded by those factors and a booming property market and I would argue were unsustainable in the long run because the oil has run out. But the main point is that they were affordable the, you could and should have sent the money on something else but they were affordable.
On top of that the re-election success of Mrs Thatcher were not necessarily down to tax cuts, the Falklands helped as did Michael Foot. but the tax cut myth is just what the Tory party wants to believe, what its wealthy backers want at any cost, every time and it is all the Tory party can offer.
Now the country is broke, taxes are rising for everyone and services in a terrible state, there is no money. Therefore tax cuts are not the answer, unless you are someone who has learnt nothing from your own party’s history.
Economics, trade and Brexit, not necessarily in that order but the dog always comes first.
By Jonty Bloom Media