Have to admit that this £21 billion in tax cuts that was hypothetically proposed by the Tax Review group of the Tories has some interesting measures.
Abolish inheritance tax.
Reduce lowest rate of income tax to 20%
Reduce corporation tax to 25%
Remove child 'credits' for those earning over £25,000
Increase green taxes
It seems to be the country prospers when government reduces the tax burden and does not involve itself in your day to day affairs (i.e. taking a guy to court for not filling a recycling bag properly).
Tax and spend has always historically failed. Spending on the NHS has virtually doubled, and the NHS has virtually collapsed. Despite all that money, there will be around 10,000 to 20,000 job losses amongst nurses, auxillaries etc. PFI has meant we will simply be paying more for hospitals in the long term.
A lot of the tax take is wasted on beurocracy... and of course public sector pension schemes will be in a shambles with the massive increase in its workforce of 5 a day co-ordinators....
The Tory tax cuts would certainly encourage businesses to stay here, especially if there is a reduction in red tape and comparatively low tax burden with other EU countries. Who knows, maybe Royal Doulton, Dyson and TVR would even still be built in Britain.
The biggest win though is in just simplifying the tax system. Do away with the complicated system of 'tax credits', reduce means testing, look at flat rates of taxation, reduce beurocracy and those it employs.
Rather than people moving here to work cash in hand we want inward investment creating jobs for UK workers.
I think Camerons strategy was basically sound - don't announce your plans too early - and it's a shame that the Tories appear to be shooting themselves in the foot again by bringing this out now, but hopefully some common sense will prevail and the country wont continue to be taxed to its knees.