Are we all getting a Christmas bonus from the taxman?
Gordon Brown has been hinting again that the Government is planning to cut taxes when it presents its pre-budget report on Monday, November 24.
He told the Commons that "fiscal measures" were needed, in order to "help businesses and families now."
The Conservatives are trying to push the argument that the money to pay for tax cuts will have to come from borrowing - which will need to be paid back.
Tory leader David Cameron urged the Prime Minister to "be straight with the British people" and admit the cash will eventually have to come out of our pockets, in the form of higher taxes in years to come.
But this is a little disingenuous, as the Tories must have noticed that the Government has said more or less that.
Birmingham Hall Green MP Steve McCabe, a Government whip, said openly that the money will have to be repaid, when he spoke to the Birmingham Post & Mail recently.
Employment Minister Tony McNulty has said the same.
It's not quite certain that this will mean higher taxes, as tax revenues will rise once the economy starts to grow again even if tax rates remain the same, assuming spending is controlled.
But Labour have made no attempt to deny that taxes could eventually have to rise, and with good reason.
Mr Cameron is probably right in his prediction. But Labour are gambling that voters won't worry to much about the future if they get some extra cash in their pockets now, and if they are convinced it is all for the benefit of the wider economy as well as themselves.
What may be a problem for Mr Brown, however, is that he has raised expectations to such a level that people will be expecting a give-away mini-budget next week.
If his vaunted "fiscal measures" amount to an increase in tax credits for the low paid and a bit more on the winter fuel allowance, families on average wages who are feeling the pinch but aren't poor enough to qualify for the windfall may feel hard done by.
Older/Newer
« Council's "craven cowardice" over Metro extension | Birth Of A Nation »
0 TrackBacks
Listed below are links to blogs that reference this entry: Are we all getting a Christmas bonus from the taxman?. TrackBack URL for this entry: http://blogs.birminghampost.net/cgi-bin/mt421/mt-tb.cgi/94265
5 Comments
Leave a comment
News authors
Marc Reeves - Editor of The Birmingham Post
My postings |
My feed
Paul Dale - The Birmingham Post's public affairs editor
My postings |
My feed
Subscribe to receive updates by email
Jonathan Walker - The Birmingham Post's political editor
My postings |
My feed
Phil Davis - Board member of Passenger Focus (rail transport passenger group)
My postings |
My feed
Latest Birmingham Post Business blog
Birmingham Post staff and guest bloggers from Birmingham and the midlands inform and entertain on all business matters.
Latest Birmingham Post Lifestyle blog
Birmingham Post staff and guest bloggers from the midlands give you the lowdown on what's happening in your region and some musings on culture in the UK and beyond.
Latest Birmingham Post Sport blog
Birmingham Post staff and guest bloggers from Birmingham and the midlands inform and entertain on all sporting matters.
It does you honour, Jonathan, to spend time to think and write on the subject.
However, all questions on economics currently asked are totally academic. The collective 'we' allowed a system to be created that served our greed and - by definition - will always self regulate: Remember those nights, when young and full of hope, we'd discuss socialism, capitalism, and some of us - exasperated - would just emigrate to Canada and earn a living felling trees?
By the way, did you read that piece on Karl Marx's "Das Kapital" all of a sudden enjoying unprecedented sales figures? Publisher so happy to do another print run. I love it, Jonathan. Oh, the irony. To paraphrase good old Will: The world is a stage, largely populated by chickens running around with their heads cut off.
U
I haven't seen the article you mention - I'll have to dig it out.
I did read Das Kapital myself as a student, many years ago (and Adam Smith too, I hasten to add).
As for headless chickens, maybe this is why Brown is doing better in the polls at the moment - he does seem to have some kind of plan, and while I don't have any idea whether it's the right one, he gives the impression that he's convinced he knows what to do.
In other words, while a lot of people do indeed look like headless chickens, he seems to be in his element. I have my doubts about the wisdom of borrowing huge sums to pay for tax cuts, but we'll learn more on Monday.
Jonathan, yes Adam Smith (he'd be turning in his grave if he had the strength), and of course there is Keynes. OH MY GOD; he came to my attention big time when I arrived in this country not long after the Iron Lady, who - on risk of you never talking to me again - I admire hugely, came to power.
It's odd with Brown. I trust the guy completely with anything vaguely to do with the country's economy: I hope I won't have to eat one of my few hats any time soon, and, on top, be burnt at the stakes for uttering this my sentiment.
Maybe a subject of interest to you as political editor, one wonders whether accountants don't indeed make good prime ministers, even if not the most charismatic.
I have never voted Labour, mainly because I am not allowed to vote in this country, but I'd still give Brown my vote of confidence in every respect. Not, of course, that he'd ever be able to match Angela Merkel's cleavage. But that's another story.
U
You'd best hope the taxman gives you a bonus as Sly isn't!
He'll give with one hand, but take with the other. We've seen it before. Stealth taxes (uncovered days or weeks later by the opposition's tame accountants) will take away whatever we "get" in the headlines.