It is very important to understand the pie chart above. It shows how the government extorts money from you to waste on mostly unnecessary spending. You would be far better being allowed to keep the money you earn to spend yourself. You might say that you don’t pay, for instance, corporation tax, but you do, its cost is built into everything you buy.
This makes the Conservative promise to freeze incomes tax, national insurance and VAT very interesting. In addition they cannot put up corporation tax as this would massively damage the economy. But the Conservatives still have to produce budgets that reduce the deficit. So something has to give. And the ONLY thing that this can be is government spending. With their tax promise the Conservatives are effectively saying that they are going to significantly reduce the size of the state. About time too. It is a proven fact the the smaller the state the better a country performs economically.
Of course the Conservatives have form for freezing taxes, in the last government they froze fuel duty, getting rid of Labour’s fuel price escalator. This has been a godsend to families over the last 5 years. They also, effectively, froze council tax rises. Stopping the profligate, out of control, waste that local authorities were up to during the Labour years.
The contrast with Labour’s plans could not be more striking. They are trying to buy votes by making promise after promise to spend more money. So they will increase the size of the state. They will then try to extort more money out of the economy to pay for it. And in this they will certainly fail. The problem is that anywhere they take money from will cause harm. They can put VAT up, making everything more expensive, they can raise corporation tax, frightening off the businesses that generate our wealth. They can raise the taxes on alcohol and car ownership (by contrast remember that Osborne has been reducing beer tax every year).
Or, of course, they can follow their class warfare and hit the rich. This too will definitely not work. The rich are already overtaxed, they pay most of all the income tax collected. And hundreds of thousand of them have already left the country to pay their taxes where governments are less greedy. Singapore, Dubai etc are full of high income expatriate Brits. And despite what the left say the Laffer Curve is a proven economic truth. If you put tax rates up too much you collect less tax and cripple growth. So what Labour are planning just will not work. It will damage EVERYONE.
So you can see that the choice is stark. A Conservative government that will reduce state extortion so the economy booms. Or a Labour government applying lefty dogma that will definitely trash the economy. As every Labour government before has done.