Ian Blyth – It's Just a Thought

My thoughts and opinions

Greed and Envy

Posted by Ian Blyth on 25 June 2007

It never ceases to amaze me how Labour and the left in general bay for the rich to be taxed to the hilt. The reason being that they can then give this money to the poor for “equality”.

If you are living on a modest wage the thought of taxing the rich is appealing. They can afford it. They have lots of money. They don’t deserve it. And so on.

The thing is that the more you earn the more tax you pay anyway. If the tax is a flat 20% and someone earns £20k then they pay £4k. If they earn £200k then they pay £40K. So even with flat rate tax people who earn more automatically pay more anyway.

And there seems to be a misconception that people who have more money just horde it. Perhaps they think people with more money stick it under their bed. Like most people they spend it. Perhaps on more luxurious things but they do spend it and that in itself keeps companies in business and allows them to pay people’s wages so that they in turn can spend it.

This concept of “milking the rich” is an emotional tug that politicians use. After all there are more poor people than rich people. But with 10 years of Labour in power has the poor got better due to their policies. I can not see it. But politicians use it get their votes.

All the factual economic studies backed up with case studies from governments that have done it shows that reducing the tax burden helps the economy and paradoxically brings in more tax. It brings in business and entrepreneurs are more likely to spring up which creates jobs and prosperity. When tax was an eye watering 98% for the rich with a pervious government all that happened was the rich moved to other countries so the government did not get any of their money.

The thing is how can these people who want the rich to be taxed be educated to realise that entrepreneurial people are good for the economy and therefor better for their self interest and get over this emotion feeling of greed and envy.

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