Wednesday, July 01, 2015

You cannot collectively take out more than you collectively pay in

The pro-immigration lobby needs to pay attention to this ONS report:  http://www.ons.gov.uk/ons/rel/household-income/the-effects-of-taxes-and-benefits-on-household-income/2013-2014/index.html

Especially note:  "...51.5% of households received more in benefits (including in-kind benefits such as education) than they paid in taxes in 2013/14. This is equivalent to 13.7 million households".

Can we have a breakdown of these households by country of birth please?

Is it not the case that the explosion of immigration under Labour (and seemingly continuing at an unstoppable and unmanageable pace) is simply importing poverty from around the world?

Yes, business owners get a spike in their profits from cheapo employees, but those employees are not so cheap once you start to factor in all the benefits they take (and cannot pay for since their wage rates are so low the tax they pay is minimal).

"Oh I'm not bothered about petty details" say the lefty liberals, "I'm an internationalist - the more diverse people here the better" (the evil-speaking Rev Giles Fraser actually said this on Question Time last Thursday - evil because his grand expansive gestures will have to be paid for by ordinary households that are already struggling).

What these dumb internationalists do not realise is that the economic consequences of their pro-immigration ideology is like a systemic poison - it will seep all the way through our society.

If the majority of households receive more benefits than they pay in taxes a deficit is created and the welfare state (in its widest definition) must be cut back to adjust.  You cannot collectively take out more than you collectively pay in.  Is that so difficult to understand?

The idea that "the rich" will pay is a dishonest trick the left regularly tries to play on voters.

If taxes rise the rich will either move away themselves or move their money away.  The vast bulk of tax has always been paid by the middle classes (socio-economic groups C2, C1, and B).  If the middle classes have falling incomes the state will have falling tax receipts and the state sector must as a consequence have falling wages and investment.

Recently I was at a small factory making chemical products.  Their lab, which twenty years ago would have British-born employees on permanent contracts, now has a mix of Polish and Indian employees on temporary contracts.  The owner loves this, as they are much cheaper to employ.  But these lab technicians are not field workers cutting cabbages, they are middle-class professionals.  These are the occupations we depend on to pay their local and national taxes to fund teachers, health workers, firefighters etc.  If the tax these middle-class people pay goes down then as surely as night follows day the salaries of teachers, health workers and firefighters must go down.

No comments: