Post by Diarist on Jan 12, 2017 14:52:36 GMT 1
Normally everything is closed on New Year's Day but Winston took me to a local pub and knocked on the back door. We were led in to the private bar and joined half a dozen others who had the same plan. I had to explain what I do within the MoD but thankfully we didn't start discussing work or war. Instead the tax increases being introduced today were on everybody's mind. "Bob had the nerve to suggest a Champagne and Cigar Tax but I quickly shot that down."
"Winston, the people who buy Champagne and cigars can afford the tax. Increasing taxes on the poor means that they have less spending power which leads to lower retail sales, lower sales tax, less being produced to replenish the shelves, layoffs, closures and less tax revenues. In short it's a downward spiral to even more debt. We need to break out of that spiral."
"But we need more taxes to pay for the rearmament," one of the guests countered.
"The Germans are rearming not us, Sir. We are expanding and modernizing and both cost money. Unfortunately we have to increase taxes but it is how we utilise the extra funding which counts. By funding cheaper labour for our industry more is being invested and not only will that generate more revenues it will also make the equipment cheaper for the required expansion."
"Sounds like creative financing to me..."
"I admit that there is a lot of juggling involved but we have our best minds working on it."
"He even arranged for John Keynes to polish up the plan," Winston added.
"In fact, Winston, I'm working on a second paper for him. We need to use this opportunity to fix our finances at the same time."
"I'm looking forward to reading it, Bob."
"It's a low priority project. We have more important issues."
"I'm interested. Which opportunity do you mean?"
"The chaos the next war will bring. No matter how well we plan our economy the war will totally mess up everything. Afterwards there will be an opportunity to start afresh."
"Why can't we just change things without a war?"
"People don't like changes, especially those in charge."
"You don't want to get Bob started. We have to go anyway. Happy New Year, gentlemen."
Outside Winston asked me if there are tax changes we should announce now.
"We need to avoid giving tax relief to those who already have enough money. Close loopholes which help the wealthy avoid taxes. Give tax rebates for firms which actually invest in Britain, not for write-downs in the hope that they reinvest here. The list goes on. Since we are alone, about Versailles. Are you sure it is wise for me to head our delegation?"
"Bob, you are a cabinet minister in the MoD and you are well-versed with the matter. You are my best choice. Enough of that. You making any progress."
"I have ideas in my head so I just need to put them on paper. The reason I asked is because I don't want to neglect Palestine."
"Palestine's in February, Bob. You have time for both."
Back at Chartwell House we had a wonderful roast for lunch then later in the afternoon we drove Wallis home to Fort Belvedere.
"Winston, the people who buy Champagne and cigars can afford the tax. Increasing taxes on the poor means that they have less spending power which leads to lower retail sales, lower sales tax, less being produced to replenish the shelves, layoffs, closures and less tax revenues. In short it's a downward spiral to even more debt. We need to break out of that spiral."
"But we need more taxes to pay for the rearmament," one of the guests countered.
"The Germans are rearming not us, Sir. We are expanding and modernizing and both cost money. Unfortunately we have to increase taxes but it is how we utilise the extra funding which counts. By funding cheaper labour for our industry more is being invested and not only will that generate more revenues it will also make the equipment cheaper for the required expansion."
"Sounds like creative financing to me..."
"I admit that there is a lot of juggling involved but we have our best minds working on it."
"He even arranged for John Keynes to polish up the plan," Winston added.
"In fact, Winston, I'm working on a second paper for him. We need to use this opportunity to fix our finances at the same time."
"I'm looking forward to reading it, Bob."
"It's a low priority project. We have more important issues."
"I'm interested. Which opportunity do you mean?"
"The chaos the next war will bring. No matter how well we plan our economy the war will totally mess up everything. Afterwards there will be an opportunity to start afresh."
"Why can't we just change things without a war?"
"People don't like changes, especially those in charge."
"You don't want to get Bob started. We have to go anyway. Happy New Year, gentlemen."
Outside Winston asked me if there are tax changes we should announce now.
"We need to avoid giving tax relief to those who already have enough money. Close loopholes which help the wealthy avoid taxes. Give tax rebates for firms which actually invest in Britain, not for write-downs in the hope that they reinvest here. The list goes on. Since we are alone, about Versailles. Are you sure it is wise for me to head our delegation?"
"Bob, you are a cabinet minister in the MoD and you are well-versed with the matter. You are my best choice. Enough of that. You making any progress."
"I have ideas in my head so I just need to put them on paper. The reason I asked is because I don't want to neglect Palestine."
"Palestine's in February, Bob. You have time for both."
Back at Chartwell House we had a wonderful roast for lunch then later in the afternoon we drove Wallis home to Fort Belvedere.