As Tim notes on Tory Diary we've released a TaxPayers' Alliance response to the Conservative tax plans announced this morning. We aren't exactly thrilled, but no one seems to be. Even the most enthusiastic responses have been along the lines of "well, at least it's something".
One particular comparison illustrates what has gone wrong. Not so long ago George Osborne was announcing plans to abolish complicated reliefs so that he could cut the headline rate of corporation tax. This would make the system fairer, lower compliance costs and be a great thing for British business, we were told.
What have they done today? Introduced a complicated relief. Of course, the behaviour they aim to encourage is one we can all applaud, businesses creating more jobs to take people out of benefits, but that doesn't mean there need to be special incentives in the tax system.
It is the tax simplifying Conservative Party from last March that was in the right. The Tories have the same high hopes that politicians always have for their favoured interventions in the market. Unfortunately, they'll wind up distorting the economy, creating significant compliance costs and generally making a mess of things.
Instead, they need to respond to clear public demand, go further than they did last March, and cut the overall burden of tax. They should have announced this morning that they would cut wasteful spending and deliver tax cuts to lower costs to business or put money back in the hands of ordinary people and boost spending. Get government off the back of taxpayers and you'll see the results in greater prosperity and employment; don't wade in with more complex hoops that businesses need to jump through in an already overcomplicated tax system.