Wednesday, 17 February 2010

Labour’s Death Tax

At last we have some clear blue water: on the care of our elders.
As Benjamin Franklin wrote in 1789: “. . . in this world nothing is certain but death and taxes”. No wonder Labour’s death tax is such a double-whammy.
A compulsory levy robs those who've set aside something for their old age, transferring it largely to those who’ve made no provision. It discourages self-reliance.
The debate is also a proxy for the argument on both sides of the Atlantic about how to fund healthcare in general (bearing in mind that on average half our lifetime healthcare costs occur in the last two years of life).
People no longer want to pay more in taxes, i.e. “big government”. A more voluntary insurance based solution is not easy because the premiums are paid well ahead of the risk, but the concept is not so different from pensions.
New Labour ducked the issue for twelve years. The Conservative solution should not be scoffed at, even by the London Daily Telegraph.

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