Tax cuts…….
…..or tax cons?
It has to be said, David Cameron’s Conservatives have been outflanked by both Calamity Clegg and debtmeister Brown in the battle over tax cuts. Today’s announcement over plans to reduce business taxes and improve the employment situation may well be sensible but it is not good politics, the public are looking for direct tax cuts that put money in our pockets to spend. It is, after all, our spending power which will create the demand that drives the economy and provides new jobs. (In reality we need to find a balance between corporate and personal taxation)
The Conservatives have hidden in the shadows over tax cuts, they have been afraid to be attacked by Labour (knowing full well that real tax cuts can only be financed by belt tightening within the public sector), so they hung on to Brown’s coat tails over the bank bail outs and future public spending plans. That narrative may have suited the economic landscape earlier this year or last year, but it is no longer suitable for next year or the year after. Knowing that if they are returned to power at the next election they face months of looking at the books and trying to figure out what can be afforded, a PSBR out of control, and a need to repay government debt, it will become obvious very quickly that public spending would need to be radically pruned.
Cameron and Osborne have allowed their political opponents to outflank them over the past month, to the extent that by this morning the Conservative Party was out on a limb and not offering tax cuts. They need to urgently look at their own agenda for solving the economic problems of the UK and worry less about the Lib-Dems (who will never form a government in the remainder of my lifetime), nor the Labour Party who are the authors of much of the mess that we are in.
Brown’s plans for tax cuts are starting to be unravelled already, his last tax cut was a tax con and so are some of these, the U turn on car taxes is nothing more than a delay of a tax increase!
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I am very frustrated with David Cameron & co, I so want to support them, but the minute he made his ‘austerity’ speech at the Conservative conference, he backed himself and the party into a corner. He is leaving the ground wide open for Gordon Brown, Cameron needs to reconsider his position and forget about prudence. Yes, yes, look at spending cuts, god knows there are plenty of IT projects that can be cancelled, curtailed or shelved, but the economy needs a boost. people need to know they have more money in their pockets, so that they can invest into the economy, monetary policy is a good start, but fiscal is essential. The country simply must combine spending cuts with tax cuts and any shortfall needs to via borrowing. There is no point in having a perfect set of fully balanced books if there are 4m on the dole queue and people starving. I just wish David Cameron would consider getting some real people around him, because at the moment, he seems to be ill-advised for the current crisis.
UK Voter
November 11, 2008 at 6:10 pm
NEW on http://iamthewill.wordpress.com/
Does Raising Taxes on The Rich Create Jobs? Yes, it does.
The Will of The People
Will S.
December 16, 2010 at 2:39 pm