David Cameron has announced his big new plan to tackle the recession. He's going to increase the personal allowance for pensioners by £2,000 a year and make abolish basic rate tax on savings income
There's only one good thing to say about this plan: the man has clearly shown his true colours.
The fact is that there is no way we can save our way out of a recession: we can only spend and work our way out of one. But Cameron clearly sees it otherwise. He wants to help savers and cut government spending, both moves guaranteed at this time to reduce economic activity and so deepen the recession and encourage deflation. as an economic policy it's incompetent in the extreme.
It's also inept social policy. It helps those who already have wealth, and not the jobless. It helps the tax avoidance industry. It helps bankers. And whilst it will help pensioners (to which I do not object) it does not help those in society suffering paying their mortgages, who candidly may be in much greater need. As a result it appeals to every Tory agenda: wealth, tax abuse, undermining the economy and increasing the gap between rich and poor. Fabulous.
And let's just think for a moment about how this complicates the tax system. Can't you just imagine the acres of legislation this will require? That's also blown the tax simplification agenda apart, forever.
Not a good move David, not a good move at all.
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Richard,
Trying to stay abreast of the latest in what passes as left-wing “thought”. Are we now supposed to embrace the consumerism and materialism so decried previously by the likes of Naomi Klein, et al?
Is the the hard-left’s
NoNew Logo?You’re obviously not trying very hard Georges, there’s a big difference between advocating investment in a transition to a low-carbon economy, creating many new jobs in green manufacturing, etc, and the existence of a culture of worshipping overpriced “designer” goods that are actually made cheaply in sweatshops overseas…
If Cameron wants to help pensioners, he should be calling for a restoration of the link with earnings for those receiving the state pension, and an end to means-testing which puts many pensioners off claiming benefits to which they are entitled.
Charlie
You’re right: top line changes are always better than fiddling with tax
Richard
Saving creates a pool of capital which should in a properly regulated & functioning economic market be put to productive use.
Currently banks may have a lack of capital. HMG are considering injecting more.Having a source of private capital should not be discouraged. Lets remember its opposition talk,not implemented, policy like vat reduction!
Tax rises are inevitable to pay for the spending announced be it good or bad spending.
Perhaps specific control of tax law should be taken away from them. They should outline their spend plans and the raising of tax should be confined to mainline rates. HMRC should be given a remit to introduce a GAAR and to simplify taxes in an equitable way by submitting this directly to the electorate via referendums. This could be the case on other issues also.
Until we have Swiss style democracy we will have Gesture Politics & Politics driven by ‘individual’ political survival and perhaps party survival.
I would suggest if we had the above in place we may not have a Boom, as well as other divisive policies.
FYI or interest.
http://www.europa-magazin.ch/zone/.3bb51286/cmd.14/cert.156.R6Zoar4HNvF.2
http://en.wikipedia.org/wiki/Direct_democracy