a day ago
The Government needs to realise the economic illiteracy of tax raids
SIR – The childish binary politics of 'bosses bad, workers good' playing out under our Government cannot continue ('Tax raid looms for middle classes', report, July 14).
Of course, the Government needs to generate income. Reducing the tax rate increases the tax take, as has been demonstrated in the past. Encouraging wealthy people to stay in the country – and indeed move here – means higher spending in stores, restaurants and on leisure activities, which immediately translates into higher VAT revenues. People in business understand that you don't make money by saving money. Money is made by generating growth.
Shimon Cohen
London N2
SIR – Rachel Reeves, the Chancellor, is reportedly considering increasing taxation for higher earners, but not 'working people'.
This infers that higher earners do not work for their remuneration. Many are in management positions and shoulder the responsibility of ensuring that there is work for the 'working people' to do.
Valerie Mourilyan
Wisborough Green, West Sussex
SIR – When will Rachel Reeves and this Government learn that the more you tax, the lower your receipts?
The expectations of returns on business investments have become lower than the risks involved. Economic growth is jeopardised, major companies and wealthy people are moving abroad and more people are on the dole.
Liz Truss had the right ideas – but they fell apart because they were needlessly rushed and, above all, undermined at home, sparking a negative international response.
Derek Morton
Stockport, Cheshire
SIR – The middle-income group of hard-working people are more likely to be able to afford electric vehicles, solar panels and heat pumps. The impending raid on their finances, in addition to other penalties levied in the past year, show just how incompetent and disconnected this Government is.
Chris Benn
Grantham, Lincolnshire
SIR – I wonder if the Chancellor watches Antiques Roadshow.
On Sunday night, Andy McConnell was presented with a small, elegant jug made of white opaque glass, produced in south Staffordshire. He could date it precisely because we learnt to imitate ceramics in this way in 1740; when excise duty was imposed on British manufactured glass in 1745, white opaque glass was not included. However, in 1777, excise duty was added, causing manufacture to stop immediately.
Some fundamental and inescapable laws of economics applied then as now.
John Brady
Haddenham, Buckinghamshire
