Monday, Nov 24, 2008
Can Darling’s VAT cut save the UK economy?
MoneyWeek: Can Darling’s VAT cut save the UK economy?
Alistair Darling's pre-budget report will focus on a 2.5% cut in VAT. But in a recession we shouldn't be trying to encourage consumption - we've done enough of that already, says John Stepek.
Posted by damien @ 11:24 AM (567 views) Add Comment
9 Comments
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1. planning4acrash said...
VAT is being cut, and other taxes will have to be cut, because Government will not get income without tax cuts. They must stimulate the economy with tax cuts to get any milk from the sheople. But, as mentioned earlier, the reduction, being paid for via borrowing (printing of money) will be offset by inflation in a very short time.
So, not only are we on a race to the bottom in terms of cuts (people won't take government funny money unless it is worth less, making it worthless) - So to are we on a race to the bottom in terms of taxes. Right now, government are pushing on a string. They higher taxes are, the less revenue they receive, if taxes remain this high, revenue will decrease.
What we are seeing is a meltdown of big government. The parasite is killing the host, and, will kill itself. Lets hope my prediction is correct, that we collapse into England, Ireland, Scotland and Wales, Possibly with other smaller areas going for tax free status, Isle of Wight, Cornwall, those hit first and worst will be the ones to lead the charge. If government don't make the change peaceably, then we will see tax revolts and revolution. Yes, the police state is at hand, but there are 50million of us, a few thousand of them. No army can hold back an idea when its time has come.
If that collapse occurs, we could see regulation just slashing overnight. Farmers, overnight, being able to sow as much crops and whatever crops they like, Monsanto without central bank support. Mines re-opening to boost the economy, just freedom, liberty, happiness, a feeling of with, strong patriotism and community.
2. Mr Cobblepot said...
Hmmm, I think the government already anticipate some trouble in the coming months, read this from the main page of bbc news website
http://news.bbc.co.uk/1/hi/uk/7745137.stm
3. fahrenheit451 said...
Don't know how this really works yet, but if it looks like another U-Turn is about to be made.
GBH is going to pinch the Conservative's ideas. Then claim that he is a man of reason and that we should all trust him.
4. the haunted said...
No!
5. mountain goat said...
It will knock a few percent off the CPI figures though. Handy for the government and BoE as they head for zirp (zero interest rate policy).
6. Notbuyingoneyet said...
Well, No. I am unlikely to rush out and buy a new TV just because I can save £5. I am more likely to put £5 into my savings to make up for the drop in interest I get. I have to save for my retirement don't you know :-)
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