Book contents
- Frontmatter
- Contents
- List of figures
- List of tables
- Preface
- List of abbreviations
- 1 The taxing state: an introduction
- 2 ‘The limits of our taxable capacity’: war finance, 1914–1918
- 3 ‘This hideous war memorial’: debt and taxation, 1918–1925
- 4 ‘Adjusting the particular turns of the different screws’: reforming the income tax, 1920–1929
- 5 ‘The great conflict of modern politics’: redistribution, depression and appeasement, 1929–1939
- 6 ‘The exigency of war’: taxation and the Second World War, 1939–1945
- 7 ‘The mortal blows of taxation’: Labour and reconstruction, 1945–1951
- 8 ‘A most injurious disincentive in our economic system’: Conservatives and taxation, 1951–1964
- 9 ‘Modern and dynamic economic policy’: Labour and taxation, 1951–1970
- 10 Rethinking taxation policy: from an opportunity state to an enterprise society, 1964–1979
- 11 ‘Highly defensible ramparts’: the politics of local taxation
- 12 Conclusion
- Appendix: chancellors of the Exchequer and prime ministers, 1908–1983
- Bibliography
- Index
8 - ‘A most injurious disincentive in our economic system’: Conservatives and taxation, 1951–1964
Published online by Cambridge University Press: 23 December 2009
- Frontmatter
- Contents
- List of figures
- List of tables
- Preface
- List of abbreviations
- 1 The taxing state: an introduction
- 2 ‘The limits of our taxable capacity’: war finance, 1914–1918
- 3 ‘This hideous war memorial’: debt and taxation, 1918–1925
- 4 ‘Adjusting the particular turns of the different screws’: reforming the income tax, 1920–1929
- 5 ‘The great conflict of modern politics’: redistribution, depression and appeasement, 1929–1939
- 6 ‘The exigency of war’: taxation and the Second World War, 1939–1945
- 7 ‘The mortal blows of taxation’: Labour and reconstruction, 1945–1951
- 8 ‘A most injurious disincentive in our economic system’: Conservatives and taxation, 1951–1964
- 9 ‘Modern and dynamic economic policy’: Labour and taxation, 1951–1970
- 10 Rethinking taxation policy: from an opportunity state to an enterprise society, 1964–1979
- 11 ‘Highly defensible ramparts’: the politics of local taxation
- 12 Conclusion
- Appendix: chancellors of the Exchequer and prime ministers, 1908–1983
- Bibliography
- Index
Summary
A high rate of taxes reduces incentive – whether it is an incentive to work a bit more overtime or the incentive to exercise business initiative. A high rate of tax militates against personal saving and leaves companies with less funds to invest in the expansion and modernisation of their business. A high rate of tax inevitably leads to wasteful expenditure and a waste of technical expertise in thinking up new methods of tax avoidance.
Bodleian Library, CPA, CRD 2/10/11, notes for Mr Heathcoat Amory, 27 Apr. 1959 (B. Sewill)The system for financing public expenditure is a product of history. It is not necessarily what would have been devised for an efficient economy under circumstances of full employment and still capable of sustained growth.
PRO, PREM 11/3304, note to prime minister on Treasury paper on ‘Economic growth and national efficiency’, 12 July 1961… the effect of taxation on economic development needs a thoroughly new approach. Much of the current talk about the effect of taxation on the economy … is conducted in terms of nineteenth century equity rather than in terms of the effect of taxation on economic development. Discussion of broad issues should no longer be confined to the Revenue and Customs; operational changes must of course be conducted behind closed doors, but this is no reason for failing to look at the wider long-term issues.
PRO, T230/579, ‘Elements of a policy for economic growth’, F. R. P. Vinter, 27 Feb. 1961- Type
- Chapter
- Information
- Just TaxesThe Politics of Taxation in Britain, 1914–1979, pp. 229 - 278Publisher: Cambridge University PressPrint publication year: 2002