The Logical Conclusion Politics and progress

Tax Cuts For The Many I: Petrol & Diesel At 60p/Litre?

Often, the left like to portray tax cuts negatively: as a vassal for the rich to be allowed to keep more of their money. Whilst most tax cuts do benefit the rich, that doesn't mean that they don't also benefit the rest of us. High levels of taxation and poor economic growth are linked beyond a reasonable doubt, and the more that the left argue that low economic growth is the major problem in the economy, the more that they are making the argument for tax cuts for us.

Having said that, tax cuts do not need to focus on the headline top rate of income tax. There are plenty of other areas which are in dire need of attention, where low-cost tax cuts could make a real difference to peoples' standards of living in the country. One such tax is the fuel duty, currently levied at an eye-watering 73p per litre (61p fuel duty, and 12p VAT on that duty -- yes, they tax the tax...), which has been named by small firms as a serious detriment to their growth. We all complain at the greedy oil companies, but not many of us realise that as much as 60% of the price we pay for fuel is tax, and as little as 3% is oil profits.

Yes, the government pocket as much as 2000% of what Shell do, every time you buy fuel.