Tax cuts: we can have our cake and eat it

Ruth Porter writes for The Daily Telegraph

With only a matter of weeks until the next Budget, debate is hotting up over how growth can be returned to our stagnant economy.

Liam Fox’s intervention today calling for greater fiscal restraint and targeted tax cuts completes the set – there have now been welcome calls from politicians across the political spectrum for serious tax reform.

Of course, there are debates to be had about where these tax cuts should be targeted. The absurdity of Ed Balls’s remarks at the weekend, calling again for the Government to cut VAT, whilst simultaneously lambasting the idea of a cut in Corporation Tax or Capital Gains Tax (CGT), is palpable. Even by his own logic Mr Balls should be able to see that the same arguments he applies to VAT also apply to CGT and Corporation Tax. Still it is encouraging that there finally seems to be some kind of consensus emerging on the fundamental point that we will not get growth without reducing the country’s tax burden.

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