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Imf Criticises The Uk's Vat Cut


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http://news.bbc.co.uk/1/hi/business/7797478.stm

An International Monetary Fund (IMF) economist has criticised the UK's 2.5-percentage-point cut in spending taxes.

Olivier Blanchard, the IMF's chief economist, said that the temporary cut in VAT would not significantly influence shoppers' behaviour.

In an interview with French newspaper Le Monde, Mr Blanchard said he did not think the cut was "a good idea".

He also reiterated the IMF's call that governments should be ready to spend more to stimulate their economies.

Mr Blanchard's comments were seized on by Britain's opposition Conservative politicians, who have argued against the effectiveness of the VAT cut.

Shadow chancellor George Osborne described Mr Blanchard's remarks as Prime Minister Gordon Brown's "nightmare before Christmas".

Conservative leader David Cameron has previously warned that the UK cannot afford to borrow to provide the funding for the temporary cut, which is due to remain in place until January 2010.

Yet more criticism for our dear leader to digest, no wonder the poor man has a complex no one likes him and none of this is his fault and he's taking all this flack trying to fix the problems that started in America, exasperated by the central bankers and bankers and made worse by stupid consumers not spending.

Please support Ponzi Brown, none of this is his fault all he wants is understanding after all he delivered real growth over the past decade to this great nation due to his understanding of global economics and all we can do is snipe and criticise this great man.

I'm sure Ponzi Brown will get his reward of greatness when historians remember this moment in time.

Chin up Ponzi Brown none of this is your fault.

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http://news.bbc.co.uk/1/hi/business/7797478.stm

Yet more criticism for our dear leader to digest, no wonder the poor man has a complex no one likes him and none of this is his fault and he's taking all this flack trying to fix the problems that started in America, exasperated by the central bankers and bankers and made worse by stupid consumers not spending.

Please support Ponzi Brown, none of this is his fault all he wants is understanding after all he delivered real growth over the past decade to this great nation due to his understanding of global economics and all we can do is snipe and criticise this great man.

I'm sure Ponzi Brown will get his reward of greatness when historians remember this moment in time.

Chin up Ponzi Brown none of this is your fault.

Thats not fair I like him. Well I like the idea of him. Well what I actually like is the idea of him in a car accident.

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Ok, so it's becoming less easy to liist his critics. Perhaps we should keep a list of his Internations Fans, and cross them off as they join in the kicking.

I'll start, others feel free to chip in.

International Fans of Gordon Browns economic policy;

Henry Paulson

Robert Mugabe

er....

that's it

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Correct me if I'm wrong here, but isn't it true that the CPI is calculated on sticker prices - ie. the VAT is part of it. Thus you can whack a nice little notch of the inflation figures as you helecopter in the dough and degrade the currency making imports expensive.

A temporay cut in employer's NI contributions would have been more likely to keep hardworking families hard at work but wouldn't have had the same fiddle-the-figures potency.

Ponzi Brown really is a cynical ****** of a ****, isn't he?

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It's not Cameron, simply anyone with half an ounce of common sense.

Basically querying 1/ How effective is this?

2/ Who's paying for this long term?

Do yo seriously think the tax payer is not picking up the tab, along with the bill for the banking crisis, car makers etc etc...???

If you think your getting a tax cut you want to try taking the blinkers off cos your about to get royally screwed like the rest of us in the UK by Ponzi Brown and his back stabbing 2 faced cohorts.

I'm not sure why Cameron is getting so excited about this bloke, it sounds like he basically favours increased government spending over tax cutting, which I thought was the opposite view of Cameron.
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An expensive pointless cut in taxes.

While some retailers dropped the prices for a while, some of those have already some have put them back up to where they were. I guess as the tax cut made items which were at say the £4.99 price point become a slightly clunky £4.88. So the tax cut has boosted retailers' margins slightly.

Was this the real purpose? To transfer the tax from the retailers of today to the shoppers of tomorrow when the VAT rate goes back up.

I guess that would be a harder sell for Brown/Alistair something like "Looks of retailers going to the wall today so do your bit by shopping, we've boosted the shops margins but don't worry this isn't reckless un-budgeted borrowing you will pay for it in higher VAT/prices next year." hmm not too appealing.

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  • 442 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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