Tory tax group takes new approach

A Tory commission wants a £21bn tax cut. No change there then you might say.

Well, in fact, it's not quite like old school Conservative tax policy.

For one thing, the commission likes to think it isn't Tory.

Some members are just small-c conservatives.

It is also different today in that the commission is not starting out with the goal of cutting taxes by £21bn and then thinking of how to give away the cash.

It is starting out with a list of desired tax reforms and then arriving at a net tax cut of £21bn.

"Interestingly, there is no mention in the commission's report of raising environmental taxes"

The commission clearly believes that tax reform can only be achieved with tax cuts or otherwise there are too many big losers for reform to be politically feasible.

So there are differences but it is still a Conservative commission arguing for a huge tax cut, a cut that would be painful for a chancellor.

Many on the free market right believe that when you cut taxes you stimulate the economy and ultimately bring in more tax revenue.

The commission thinks there is some merit in this view but only up to a point.

It does not buy the full-blown version of these arguments and rejects the idea of a flat tax, an idea for radically simplifying the tax system.

Interestingly, there is no mention in the commission's report of raising environmental taxes.

David Cameron has made clear that remains an objective.

Ah, a tax rise there. That could pay for some of the tax cuts now on the Tory agenda.

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Conservative Party
Tax Reform Commission
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