Buh bye! The new economic model

Occam's Razor is a philosophical and problem-solving principle that suggests that the simplest explanation is usually the best one; that we make things overly complicated because we over-think solutions.

Last week’s very uncomfortable live view of UK Chancellor Rachel Reeves sitting behind the Prime minister Keir Starmer with tears streaming down her cheeks was the clearest sign yet of the dilemma that Britain is facing.

Kemi Badenoch’s taunting from the opposition benches was also the clearest sign that Britain made the right choice in kicking out the Tories. She could have easily showed some compassion and called for a pause in hostilities to allow Reeves to compose herself.

But I digress..

Is Britain broke, when the government is reduced to penny pinching funds to cover the cheques that it’s writing?

No. Britain is not broke. The mainstream media would like you to think that, but the underlying strength of the workforce and the productivity puts the United Kingdom up there with the best in the world.

Reeves needs to step up, bite the bullet and do the simple thing. The obvious solution, that always seems to be brushed off as impossible - mainly because those brusher-offers are the people it will affect most - the wealthy and the owners of mainstream media.

Here’s why:

• She cannot cut spending. The UK is committed to large expenses on societal plans - NHS, welfare, job growth and immigration.

• The UK needs to play a major role in defending Ukraine and supporting the wider European effort, now that USA has shown its alliance with Russia.

• She cannot increase income tax and NI levels because they’ve only just been raised, to no great effect.

But what she can do is increase taxes on the super-wealthy and corporations earning more than an agreed amount.

Plus she can increase taxes on industries that do more harm than good - that put a strain on our system in other ways - industries like snack makers, alcohol producers, vape and tobacco companies; there is a heavy price to pay for harming our citizens.

“But if we do that, the super-wealthy will leave the country” comes the knee-jerk response. “In the 1970’s under Harold Wilson, the top rate on investment income was 98% and those millionaires and billionaires began leaving the country. We can’t lose that wealth again!”

Wrong

We can do that again - and we should. Those millionaires and billionaires don’t pay any tax anyway; they do everything the legitimately can to avoid paying tax. Let them try to leave. Buh bye! Oh, and by the way, the accountancy companies that make a healthy living advising them on how to do it should be taxed more too.

Lots of wealth from investment comes from assets that can’t be transferred abroad - property and company shares. So just tweak the way that taxes on these things are levied - tax them by where those assets are located. Where are those big old data centres located anyway?

With one or two simple changes to the UK’s tax system, the national debt could be wiped out, arms could be manufactured and sent to Ukraine and finances generated to support NATO, the burden would be lifted from the working and middle class, and the country would have funds to be able to deliver on its pledge to create a healthy citizenry and create an entrepreneurial business environment.

The answer is simple, but it involves seeing past the smoke and mirrors that the super-wealthy and mainstream media put up to confuse the issue and place the blame back on immigration and supply chain costs.

It’s bullshit and we know it.

I feel so sorry for Rachel Reeves, but I will only support the Labour government if they actually do something to take the pressure off her and Starmer shirtfronts the super-wealthy and rich corporations that are getting a free ride off the British public.