Rais­ing taxes could be a costly mis­take

The Courier & Advertiser (Dundee Edition) - - COMMENT -

Sir, - The SNP ap­pears to be set on rais­ing in­come tax in Scot­land as part of a move to keep the sup­port of the ul­tra left Green Party.

Nearly 30% of in­come tax rev­enue raised in the UK al­ready comes from the top 1% of earn­ers and there is very strong ev­i­dence demon­strated by the Laf­fer curve, a recog­nised eco­nomic al­go­rithm, that rais­ing tax rates ac­tu­ally has a detri­men­tal ef­fect on rev­enues.

At a time when Scot­land is des­per­ate to at­tract all sorts of busi­nesses and skilled pro­fes­sion­als it is sheer eco­nomic lu­nacy to make Scot­land by far the heav­i­est taxed part of the UK in terms of prop­erty and in­come taxes.

Re­cent re­ports from the Of­fice of Na­tional Statis­tics show that re­tail sales are headed for their first an­nual de­cline in four years as con­sumers con­tinue to feel the squeeze from ris­ing in­fla­tion. Mean­while, dis­pos­able in­come is re­duc­ing. The SNP pro­posed in­come tax rises, on mainly middle in­come fam­i­lies, on the back of al­ready higher rates than the rest of the UK and re­cent sub­stan­tial coun­cil tax in­creases will se­ri­ously af­fect fam­i­lies’ spend­ing abil­ity and place in­creased pres­sures on High Street shops which will be­gin to close putting peo­ple out of work.

The fact is that the SNP can only cling on to power, salaries, ex­penses and pen­sions with the sup­port of the Greens, who have got them un­der their thumbs.

Where would any of them get a job with the afore­men­tioned ben­e­fits they cur­rently en­joy? Don­ald Lewis. Beech Hill, Gif­ford.

Pic­ture: An­drew Cowan

Is Pa­trick Harvie hold­ing an ace card at Holy­rood?

Newspapers in English

Newspapers from UK

© PressReader. All rights reserved.