The socialist Brit Tories are even dumber than their Democratic counterparts – their plan to cut Brit air travel needs a tax of thousands of pounds a trip, and will enrage the entire electorate and wreck the economy.
New taxes on air passengers will be offset by cuts in the amount of taxation paid by families, David Cameron, the Conservative leader, said today…
“What we have said is any green taxes we introduce will be offset by cutting taxes on families, or on business, one for one,”..
Since he wants to force Brits to fly less, his flight tax has to be high enough to achieve that – not just raise more tax. So what’s the level?
The easiest bunch of voters to dissuade are vacationing families on a tight budget. Doubling each of four £100 air tickets may be all that’s needed to force them to stay home – a Greenfly tax of £100/ticket.
Next come voters with second homes overseas:
About 400,000 voters own second homes abroad. On average, they make three visits per year to their properties, meaning they would be hit twice by the proposed tax.
What tax level makes them cut their annual visits to their vacation homes from three to two?
If their vacation home cost, say £100,000, one less visit means giving up a third of its present value – that’s £30,000 over perhaps 10 years – £3,000 a year. If the current air fare for a couple is £200, it’s hard to see them giving up a benefit of £3,000 until the Greenfly tax approaches that – £1,500 a ticket.
Finally, the UK is a trading nation, so much of its air travel is business. What air fares tax rate would force, say, Goldman Sachs’ UK managers, consultants and back office folks to cut flying by a third?
Since most multinationals have travel policies strictly limiting First Class travel, the tax would probably have to force Business fares up to First Class level – between £500 and £3,000 a person, depending on destination.
So the Tory Greenfly tax will need to be somewhere between £100 and £3,000.
But it’ll be impossible to have tax levels depend on why people travel – otherwise all the GS folks will pretend they’re flying on vacation! So that means setting the tax at the highest level – several thousand pounds a trip.
And that will shut down Brit leisure travel and cause an exodus of UK of companies that rely on international travel – banks, software outfits, consultancies etc.
So the UK will be poor, and the Tories toxic.