Saturday, 27 February 2021
Nor A Borrower Be
This "debt" is in fact bonds issued by the Treasury, which is the State, to the Bank of England, which is the State. A sovereign state with its own free floating, fiat currency cannot be in debt.
The purpose of taxation, like that of monetary policy, is to control inflation to the politically preferred extent while encouraging certain politically chosen forms of behaviour and discouraging others. Tax is not where the Government's money comes from. It is the issuing of currency itself that is an act of the State.
And if Labour is becoming "moderate", "sensible", "responsible" and "electable" by opposing any increase in corporation tax, then are the Conservatives extreme, senseless, irresponsible and unelectable for proposing such an increase? If not, why not?