Who invited the clowns?

The stage is once more set for Lib-Dems and Tories to pick at the unhealed scab that is the 50p tax rate. For those non-UK readers, the 50p tax stipulates that for every pound earned after £150,000, half will go to taxes. In an effort to generate more tax revenue from the rich, the polemic 50p tax has Conservatives (Tories) seething. The Financial Times reported today* that one unnamed conservative complained such tax structures (or any additional tax, for that matter) flew in the face of “Conservative values and principles” because they stifle a celebratory environment of success.

50p crushes spirits

If the celebratory sense of success if pivotal to the Conservative approach to economics and politics, why remain unnamed? If there is a transatlantic parallel to be drawn here, it is the celebration of the fairytale-like “American Dream.” Did the likes of Steve Jobs, Bill Gates or Mark Zuckerburg have private celebrations of success? Of course not. While they may have thrown a few private parties, their names are still commonplace in today’s society and an indication of just how public their success has been. Those very exposed, public success stories are the fuel on which entrepreneurs’ dreams run. Though there must be irony in the unnamed person championing the celebration of success, I digress.

Most importantly, the question is one of “how?” How will the 50p tax mar this conservative value/principle of success? Are we to believe that people will aspire to earn less because their taxes increase? I highly doubt someone would refuse a promotion that pushed him over the £149,999.99 edge. Can you compare the resentment of losing 50p to the pound (over 150k) to someone who can’t buy the name brand cereal because it’s 50p more?

The demoralization of taxes, if anything, is the biggest hindrance to the celebration of success. If you chose to subscribe to the belief that all taxes are evil, then of course you cannot see, let alone celebrate, that an increase in tax revenue from you personally may go to improving society overall. Granted, a mindset akin to “celebrating” taxes requires a high level of trust in government and its tax expenditure programs, and in today’s world, this is near impossible. And being oblivious to the effectiveness of taxes isn’t conducive either. Rather, we should be keen to celebrate success, understand taxes don’t reduce the achievements, and even see that [taxed] success is all the more praise worthy when well invested. So please, Tories, don’t be so quick to preemptively condemn an entire concept that pays for societal structure. Rather, be constructive and celebrate those programs that you think best use taxpayer money and this will provide incentive for success and a celebration we can all join in on – a feat whereby there need be no one name associated with celebrating success.


* This article may require a subscription. Apologies for those who can’t access the article.


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