Sunday 8 February 2015

Falling off a log - 2

It's falling off a log time again for Balls and Miliband. The point of Labour is to control capitalism when it isn't operating in the interests of the community. It should be encouraging business when it is to the benefit of the community but not if otherwise. Therefore there is a straight forward clear message they can offer when asked, 'Is Labour friendly to business?' It is : Yes it does want to encourage business with these there conditions: That they pay the taxes they should. That they do not exploit their workers. That they do not use market power to exploit consumers. Simple really and nobody, including representative of business, could argue with these conditions. Furthermore, Labour is promising to keep Britain in the EU and out of the euro, both of which policies are supported by most businesses. I also think the party should start to distinguish more clearly between earned and unearned income in the tax system. Example - who should pay more tax of these two? : A builder builds a house and sells it to Mr X at a £100,000 profit. Mr X keeps the house unsold and unlet for a year then sells it at a £100,000 profit. As things stand they will pay approximately the same tax. The builder corporation tax or income tax and Mr X capital gains (unless Mr X's clever accountant avoids the cgt, of course, in which case.....). It's a no brainer really. Furthermore the builder has created something of value. A family can live in it, it adds to the asset wealth of the nation. Mr X has produced nothing except a profit for himself. Simple. So tell it to the electorate!

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