Our Debt Charter

 

Our vision for the future is a fair society, that rewards work and enterprise, protects the most vulnerable and doesn’t load debt onto the future generation.

The Cut the Debt Charter for Change:

  1. Balance income and expenditure over a 5-year period.  This means that for each government term money spent has to be met by taxes, not by borrowing against the future.
  2. Make taxes simple, transparent and impossible to avoid.  We believe in massively simplifying the tax code.  Flat tax anyone?  Taxes should be paid by all, and impossible to avoid by the rich.
  3. Stop off-balance-sheet accounting.  Banks used off-balance sheet accounting, such as Special Purpose Vehicles, to hide hundreds of billions of liabilities from regulators.  The government does the same by failing to count public sector pensions, Private Finance Initiative and other spending in the total debt.  We believe all debt should be declared so we can work to reduce it.
  4. Treat all businesses equally and fairly.  We believe that businesses and entrepreneurs are the engine of growth and prosperity for our country.  Businesses should be subject to fair and transparent rules, with stability over the long-term to encourage inward investment.
  5. Don’t penalise workers to pay for the lazy.  We all know that taxes are necessary to pay for the things we believe in as a society but we believe that forced wealth redistribution is undemocratic and rewards failure.  If you work hard you deserve to be allowed to keep most of what you earn.
  6. Let capitalism work.  Allow good business to thrive, and poor businesses to fail.  The government should set the rules, then step away.  Prevent monopolies through legislation, then leave businesses to make their choices.  Subsidising failing business just prevents re-allocation of capital to more productive businesses.

 

Comments

Please leave your comments below.  Should we change any of the items above?  Do you have an additional line for the Charter?  Comment below and sign up for updates.

  5 Responses to “Our Debt Charter”

  1. Except, maybe when you talk about no more bank bashing, you should emphasize that banks will not be bailed out with tax payers money when they make bad business decisions, as we all know that is at odds with the free market.

    • Jim – I couldn’t agree more. The bailing out of the banks and bankers was a travesty and something that has to be prevented from happening again. If there was a true free market in financial services then there would be many more banks, and the vast profits the banks make would encourage new entrants to take a slice of the pie. That would do more to moderate bonuses than any amount of government tinkering with tax rates.

  2. Re charter point no. 1, government is right to spend more than it receives in taxes at the low point of an economic cycle in order to reduce the downturn. What went wrong with the last government is that they overspent during a boom too, making the boom bigger and so the inevitable bust bigger too. It is too inflexible to say that the budget must balance over any 5 year period.

  3. Add to the above

    1. Abolish central banks – markets should decide the price of money, not unelected, unaccountable pupets of Govt
    2. Abolish fractional reserve banking – banks should lend no more than they actually have
    3. Control Govts take of the national wealth by enshrining a maximum 20% of GDP into the constitution

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