Tuesday, October 28, 2008

Brown's tax rise promise needs to be tackled before it is too late

Why is it that politicians are allowed to obsfucate meaning so readily and journalists so happily help to parrot their obsfucation? Yesterday we were subjected to Gordon brown telling us that it was "responsible" to borrow what is predicted to be an extra £60bn by the end of the year in order to allow Britain to spend its way out of recession.

At the same time we were told that this would keep the economy moving and when better economic activity returned, the jam tomorrow was delievred, and we were not in a recession anymore, there would be a sharp decrease in that borrowing and the consequence debt.

Now let us cut through the bullshit. What our illustrious former "prudent" Chancellor andnnow complete lying fool of a Prime Minister actually announced yesterday was that he's going to defer £60bn of tax rises, and, when he thinks things are getting better, he will grab that money back from us all.

Time for a reality check. If you have defer massive, and I mean massive tax rises - with an effective promise to implement them when economic activty returns - what you're going to do is kill that economic activity stone dead.

Right at the point when you think the corner is turned you're going to take away the soending capability of the population through tax cuts and the economic activity will start to go backwards yet again. It's not rocket science. Gone is Austerity Brown banging on about the Age of Irresponsibilty. No, now it is the "responsible" thing to promise to increase tax on us by a staggering amount. The question is what taxes will be raised to make us pay for his "investment"?

If past perfiormance is anything to go by then I expect we'll first see a freeze on the tax thresholds to create a little bit of fiscal drag. Possibly an increase in VAT or making VAT chargeable on items for which it wasn't before. Certainly an increase in fuel duty in the coming months. A "readjustment" of inheritance tax threshold in line with falling prices. A reduction in tax rebate on private pension contributions? An increase in National Insurance across the board?

Of course he may not do any of these things because he may not be in power to do so. This latest "responsible borrowing" is really just a burden on future Governments. If the polls are to be beleived it will be the Tories that will be forced to do this and cause much pain and increase the potential of a one term administration where Labour come riding to rescuse as angels of the people who have been so hurt by the evil Tories.

There has been much said about how there is limited dividing line between the parties these days. This however is the opportunity for one to appear. On the one hand you can have Brown's Labour promising to hit you where it hurts in the future, or Cameron's Tories promising to create an economic stimulus by cutting tax and letting us all individually spend our way out of recession. Whether Cameron and the Tory Leadership is willing to have that battle of ideas once more I do not know.

8 comments:

Tyranny said...

Well said. This is weak stuff from the PM who has no other solution, but the mainstream media seem happy to parrot this total nonsense.

Letters From A Tory said...

Cutting taxes is never going to happen, as I was explaining on my blog this morning. Cameron risks being labelled as irresponsible if he starts cutting taxes (regardless of whether or not that is true) and the Conservatives cannot afford to concede any more ground against Brown/Darling when it comes to economic competence.

This is not a battle over economics - this is a battle for the support of the public.

Anonymous said...

Hear,hear. There's a saying, Don't put off until tomorrow, what you can do today. This man is a fool, he's going with the mindset, I've 18 months to become popular, get re-elected and I've 5 years to get out of the shit, except he hasn't.

The effects of this policy will grow the consequencies by about 3 times than tackling the problem today setting the path to stability and future prosperity. Difficult decessions for difficult times, but GB doesn't do difficult does he.

Chips of Brookfield said...

THATCHER GIVES SUPPORT TO UKIP CANDIDATE

Report on recent £125 a head dinnner:

"You inspired me," said another, reaching out to grasp her fragile hand, "we need more like you".

Ms Sinclaire explained that she was standing for the UK Independence Party in the West Midlands.

"Good for you. Never give up, never give up," Lady Thatcher told her.

http://news.bbc.co.uk/1/hi/uk_politics/7694477.stm

Henry Crun said...

What Brown the Bullshitter really meant was that - yes I'm borrowing now but by the time comes to pay it all back, I'll be long gone so don't care. I've fucked up everything for the last eeven years and this is another in a long line of fuck ups but you see, it's all those Americans fault, not me guv. And those nasty tories will be left to clear up the mess I've left behind AH HAHAHAHAHAHAHA!!!

curly15 said...

I have something to lend Gordon Brown, what do you have?

Shug Niggurath said...

Brown has been offering for months either spending or taking future allocated funds and blowing them now (a computer for every child which Blears declared had come from 2012 money as an example). He's spending the Tories budgets today and being allowed to get away with this.

Cameron is going to have to get much more agressive with Brown, he appears so scared of tackling this in case Brown shouts that the evil tories want to close schools and hospitals.

HE should go for the jugular, Brown is next to useless and blatantly unsuited to his tasks.

Anonymous said...

Jeremy Clarkson hit the nail on the head.The One Eyed Scotish Idiot Its about time those labour scum packed up and boggered off. This country is screwed anyway 11 years of bullshit and lies Blair keeps his ugly mug low these days i wonder why...