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« Is Andrew Mackay about to defect from DD? | Main | David Cameron accuses David Davis of "mistakes of the past" »

Comments

michael

"At least the Davis tax cuts can be changed later."

You turn if you want to! Our credibility would be crushed. Davis has boxed himself in...he must stick with it or face ridicule.

James Hellyer

The point, wasp, is that spare capacity does not have to be generated through the state building surplus schools, but rather through allowing new entrants into the market.

TC

Michael is quite right - if you make a commitment or promise, you've got to keep it, whatever.

The first George Bush discovered that after promising 'read my lips, no tax cuts'. It was a major factor in him failing to get reelected.

loyal_tory

I think you'll find that in the unlikely event David Davis is elected leader he would not be in the market for suddenly declaring he wanted a tax increase a la John Major and George Bush Snr. And since the figures he proposes are based on economic growth and other considerations which will change I think the notion that Davis would not change them is extremely naive.

The Davis tax cuts are a tactic to try to get David Cameron to talk about his approach to tax should he win. If anyone has a better idea of how to get David Cameron to show his hand before the vote is over I would love to hear it. The Sun has had some success but unfortunately Tory leadership candidates who are behind in the polls and mere ordinary party members can't count on the same clout to get them answers.

reasonable

I'm not too keen on Simon Heffer, but I can't find anything he's said in this article that's wrong. Cameron is a PR creation. That may be no bad thing. But he's never done anything else. He may be good in the future. He may be awful. The party is so low right now that I guess we'll trying anything. But something in my bones tells me it's not quite right.

Wat Tyler

I'm collecting info on where the SDP diaspora ended up (other than Chuck and the others who stayed in the LDs). We know we got Fink, and Labour got Lord Adonis (great name). But what about the rest? Any bids?

Oberon Houston

There has been a lot of talk (I mean a lot) on the Leadership blog recently about tax cuts, and more specifically “supply-side economics”.

Whilst there is certainly a relationship between economic growth and lower taxation – be assured that this is not the panacea. If taxation is simply lowered without corresponding spending reductions in the near-mid term debt will very quickly rise, pushing up interest rates and depressing the bond market. Both these will have serious effects, not only businesses, but increasingly, the finances of ordinary people who are vulnerable to rate levels due to their high debt levels, principally through greater home ownership.

The responsible way to reduce taxation levels, avoid high debt, and in the long term increase public spending, is to work up a budget surplus and then introduce carefully measured tax cuts to stimulate growth, whist ensuring that debt levels do not rise.

- For more information on the risks of reducing taxation without reducing spending, see the Regan Administration.

- For more information on the difficulty of reducing high debt levels, see the Bush and latterly the Clinton Administration.

- For more information on failing to learn the lessons of the past, despite warnings, see the current Bush Administration and David Davis.

- For more information on doing things right to begin with (by adopting a Conservative budget and spending plan, but then royally messing it up, see the current Chancellor.

If you’ve got this far on my post, you deserve a cup of tea!

Wat Tyler

Oberon- Davis's "Growth Rule" is about limiting the growth of spending, which then finances the tax cuts. Nobody's talking about cutting taxes without concommitant spending limits.

Selsdon Man

"Nobody's talking about cutting taxes without concommitant spending limits."

Don't you believe it. Our neo-cons will try to ape Bush - the biggest spender since Lyndon B Johnson! Dubya put up federal spending by 35% in his first term and failed to veto a single Bill - even those stuffed with pork! W is for "wally" (or another moniker that the editor would ban me for using)!

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