Hypothecation – the act of reserving a specific tax for a specific purpose – is making something of a comeback under this Chancellor. The question is how should Liberals respond?
The treasury only has one commandment “Thou shalt not hypothecate”. However, George Osbourne, forever a political Chancellor, has been busily pledging taxes for a number of worthy causes such as women’s charities (Tampon Tax) PE in schools (Sugar Tax) and flood defences (Insurance Premium Tax)
The Chancellor knows that linking taxes rises to specific benefits offsets some of the political damage caused by hitting tax payers in the wallet. It’s also good for voters and it helps keep the Chancellor honest, and makes sure that tax rises remain accountable to the electorate.
Conscience: Taxes for Peace Not War is an organisation that has long argued that the right of conscientious objection should be extended to tax payers. It seems that whilst our bodies are free from conscription, our finances are not. Every bullet, bomb and soldier trained and deployed in war-zones overseas are not there by accident, but because we paid for it.
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