SINCE this will be when Alistair Darling makes the very important Pre-Budget report, announcing the latest government plans to try and help the economy recover.
The Daily Telegraph has a special section dedicated to what might happen:
http://www.telegraph.co.uk/finance/financetopics/budget/
which gives us an excuse for a silly picture
I met Mr. Darling last summer (that is not a picture of it by the way). He was getting into a car at the back of Brighton station as I was walking to school. I asked him to come to my 9 o'clock class but he said he couldn't. Nevertheless, he seemed like a nice man. His haircut looked very expensive and neat. Also, even though he had 6 helpers with him, he was carrying his own bag.
(Note: all of the above paragraph is actually true, apart from one sentence.)
setting tax higher than 50% income tax rate is from the one hand is a possible way of correcting budget deficit which is very high due to slowdown of the economy. it will help to raise a lot of money,however there are two BUTs
ReplyDeleteone is that higher income earners may leave the country because goverment destroys incentive to work for higher income earners (more than £150,000) there is no point of working if goverment will take away more than half of your income. so these people may just decide to move to the country with lower taxes - "will drive talent away from Britain"
another But. i think that increasing taxes and i may assume govement will decrease spending may be dangerous for the economy if they will do it too early. if the country shows slow sighs of recovery it is too fragile to do something. but increasing taxes goverment may face even more decrease in recovery or it can just stop it.
=) i'm not sure.. am I right?
i think that it is the first sentence)))
No, the first sentence is in fact true!
ReplyDeleteI agree with your assessment of the timing of tax raises and/or spending cuts, but I think it also depends on for how long lenders will be prepared to go without repayment.
ReplyDeleteI also agree with the possible effects of extra income tax cuts which is possibly why a 'windfall tax' on bankers' pay is being suggested, since this should be a one-off tax which will not be repeated.
Oops, I meant "the affects of extra income tax rises"!
ReplyDeleteI asked him to come to my 9 o'clock class but he said he couldn't. This is not true,i think.
ReplyDeleteThat's right.
ReplyDeleteI asked him to my TEN o'clock class!