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Realistbear

N I E S R: Cuts Will Reduce Tax Base And Thwart Goals

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http://uk.news.yahoo.com/4/20101019/tuk-economists-warn-over-spending-cuts-dba1618.html

Economists warn over spending cuts
Yesterday, 12:54 am
The National Institute of Economic and Social Research (NIESR) said lower growth would lead to less taxes, which would hold back efforts to rein in Britain's ballooning debt.
NIESR predicted the fiscal deficit will fall to 3.6 per cent of gross domestic product (GDP) in 2014/15 rather than the 2.1 per cent forecasted by the independent Office for Budget Responsibility (OBR).
It said the main reason was that growth would be slower than the OBR assumed, reducing the tax base.

This is as close as you get to an economic tautology.

Doomed in limine.

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It's still cheaper to pay out dole money, than pay someone to do a non-job at £25k.

If the public sector workers aren't needed, then they are eroding the tax base, not adding to it.

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the director of the NIESR has only recently been given a place on the MPC.

I don't really know what that implies except perhaps QE2, which is a crude conclusion...

Edited by Si1

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  • 153 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



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