Monday, November 10, 2008

Appetite for Taxes

Here's a crazy situation. The leading parties of the country all start proposing tax cuts and yet it is an unpopular move. Why? Because it has an ultimately self defeating purpose. It stops guaranteed spending (which we need, it's not necessarily on what we need, it's this Labour government after all) and gives it to the people (to hoard or spend, depends how lucky we get).

The most worrying thing nowadays is the job market and job security. An extra £10 a month in the pay packet is not going to do much for confidence if the job goes in 6 months. Collectively, I think we'd all feel better if the government was using it to sure up our economy in a professional manner.

Buy up the abandoned development sites and finish the job with social housing if you must. This is the time when governments can spend our money better than we can. Sorry, competent governments can spend our money better than we can. Piddly amounts that we would barely notice anyway.

Cutting taxes whilst borrowing ludicrous amounts of money is always going to smell like vote buying. Or borrowing at least.

Labels: ,