Wednesday, 7 January 2009

A motion worthy of note....

. As we all know Spring Conference is fast coming-up; below is a motion from ALTER which I find very worthy of support as it reaffirms some basic values to my mind;


TOWARDS A NEW “PEOPLE’S BUDGET”

Conference

celebrates 2009 as the centenary of the last great reforming Liberal Government’s “People’s Budget”, Parliamentary rejection of which helped entrench poverty and exacerbate wealth inequality in Britain to the detriment of subsequent generations;

maintains that a free, fair and sustainable society can only arise when tax is switched from wealth creation to wealth appropriation and from value added to value removed;

notes that the Party's current tax policy was agreed prior to the present UK recession.


Accordingly, Conference

reaffirms the progressive legacy of the “People’s Budget” through Liberal Democrat commitments to switch the fiscal burden from productivity to pollution and privilege;

endorses Liberal Democrat plans to cut the basic rate of income tax by 4%, targeting waste and inefficiency and closing tax avoidance loopholes for those most able to pay;

asserts the need for subsidiarity and choice in tax raising powers, so redistributive and sustainable fiscal best practice can emerge locally and regionally as well as nationally.

Conference therefore calls on the Party’s Treasury Team to

i. begin the work identified in our 2006 policy paper Fairer Simpler Greener, to enlarge the tax base through land taxation and lift National Minimum Wage earners out of tax;

ii. demand infrastructure investment and associated job creation by government spending money into circulation, rather than by inflationary debt-based borrowing from banks;

iii. explore the feasibility of a charge (post-recession) on the untaxed monopoly privilege of private banks to create, from nothing, interest-bearing deposits of British sterling;

iv. develop various tax options for local and devolved government during 2009, consistent with our enduring vision and values – and worthy of a 21st Century “People’s Budget”.


***UPDATE*** ALTER can be found here...

2 comments:

Joe Otten said...

It was going so well. But do you really think that printing money is less inflationary than borrowing?

By all means quantitative easing should be an option for monetary policy, if interest rates can't reasonably go any lower. But a policy of printing money to "invest" sounds like a wholesale abandonment of sound money.

Darrell G said...

Joe,

I take your point but my personal attitude is that given the context it is something would be acceptable in moderation.

Like you say we are soon going to be in a postion where interest rates cannot reasonably go any lower and to my mind it is by no means certain that this will provide the necessary jolt to get things moving....