Mar 12 2007
Taxing times
No sensible person likes the idea of more or higher taxes. Socialist parties like Labour and the Lib Dems always think more and higher taxes are the answer to everything. All New Labour brought to the party was the idea that you should tell people you were keeping taxes down, whilst find as many ways as possible to put them up in ways you hoped people would not notice or mind. Any party which wants to win a majority and keep it should take on board the simple fact that a majority of people have had enough, and do not want to have to pay more tax.
??Now the Conservatives say they want to switch the balance of taxation, taxing anti green behaviour more and taxing savings and earning less.?? That could be?? sensible, especially given the overall promise that the proceeds of growth will be shared between public services and lower taxes.
I would be quite relaxed to have to pay more to fly to reflect the fuel??planes burn if I kept more of my income to be able to afford it. We already pay huge sums of tax if we drive, so the lack of fuel tax on planes and trains is something of an anomaly when you realise how much energy they consume to carry us around. Any government wanting to do such a switch will need to put the tax reductions in early so people do not see this as just another wheeze to take more money off us.
John Redwood has been the Member of Parliament for Wokingham since 1987. First attending Kent College, Canterbury, he graduated from Magdalen College...
John,
Not only should you pay more tax on flying you should pay more of you income in tax too. sadly the porest in our country pay the most tax as a proportion of their income. Few politicians address this. As you rightly say we all pay massive amounts to be able to enjoy the freedoms given us by the ability to run a car. All current thinking about taxing motoring seems to revolve around put the cost up further in order to force the relatively poor off the roads to make room for the relatively rich. David Cameron’s thinking about taxing aviation seems to replicate this. Why not ration the number of miles driven or flights taken per person per year. Poor individuals could then sell unused flights and miles to rich individuals. Not only would this create an interesting market it would generate an interesting mechanism for the redistribution of wealth. Since the overall number of miles and flights would be capped it would also impact on the environment favourably.
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If the move is revenue neutral and if the move also replaces APD, then it’s a good idea. What I don’t like is the rationing idea. The Conservatives should oppose the authoritarianism of the Left. Move the taxes by all means, but don’t succumb to the self-flagellating loathing of freedom and individuality from characters such as the honourable poster above.
The money spent on administering a rationing system would be better spent on an X-prize for a new fuel efficient aero-engine, if this neo-Keynesian approach is your bag.
The best way to allow the poor to enjoy the luxuries of the rich is to allow the markets to develop systems that negate negative externalities. The objective isn’t (or shouldn’t be) to stop people driving or flying, it is to stop pollution. We would all be happier (except the atavists) if this was achieved by taking the pollution out of these activities. Rationing doesn’t encourage that, partly because it reduces demand therefore reducing the incentive to develop cleaner technology, perpetuating the cycle of restriction.
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Good site!!!
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