Everyone in politics knows about that guy (or gal), the one who keeps banging on about taxes: they should never be raised; they should be cut at the first opportunity; government spending cuts can always be found in the budget; tax cuts are political winners; tax increases drive away voters like the plague; tax increases never bring in the revenue their supposed to raise anyway; tax increases discourage spending cuts, etc.
Of course, I am that guy. So I couldn’t help but notice that while Republicans in Washington are increasingly skittish about proposing tax reductions (the state capitals are another story), center-right politicians in the rest of the Anglosphere are grabbing them with both hands – and reaping the rewards.
Just last month, in New Zealand, National Prime Minister John Key asked voters for a third term with “promised tax cuts” while his Labour opponents proposed a new capital gains tax (Bloomberg via Sun-Sentinel). The result: the highest popular vote level for the National Party in over 60 years, and (pending special ballots) the Holy Grail of politics – an absolute majority in a proportional-representation election (Economist).
Meanwhile, just this week, British Prime Minister David Cameron launched the (unusually long due to fixed election dates) 2015 campaign with a promise of two separate income tax cuts. Less than two days later, YouGov (one of many pollsters in the UK) reported that Cameron’s Tories took their first lead in its poll in over two and a half years (Telegraph).
Finally, even our neighbor to the north is getting in the act: Prime Minister Stephen Harper is moving up his planned tax reductions by about six months (National Post).
Granted, in each of these nations, the center-right is actually in power, and thus have been better able to keep spending in check (at least since 2010). Still, it is yet another reminder in this era of near-record mistrust of government effectiveness (and not just here in the US), letting the people spend their own money is a powerful way to rebuild trust and support.
Cross-posted to Bearing Drift