IMF Pressuring Tax Cuts in UK
The IMF is placing the UK government under pressure to provide a tax cut of £30bn and help the economy stave of the worst impacts of recession.
It seems very attractive on the surface but, down the road, we’ll hit another boom time and those taxes will have to be paid back at a time when we won’t notice, just like in the previous boom under Blair and Brown. It’s very likely it will come though as tax cuts appear the last refuge of both parties amid the downturn. Let’s hope it works and that we don’t end up paying through our ears in ten years time.
I think that this type of fiscal stimulus is required, provided it is iniversal and bot targeted, given we need a natural, not an engineered stimulus. However, I also believe it is possible, at least in part, to fund the costs through a trimming down of government spending and the cancellation of large-scale IT projects.
UK Voter
November 21, 2008 at 9:31 am