Thursday, December 10, 2009

Olive oil Oakeshott...

An olive oil economy...no, not what may happen because of global warming but what Liberal Democrat Matthew Oakeshott called the UK economy earlier today as our debt and our credibility "heads southwards" [Daily Politics] (plus Ken Clarke on good "straight up and honest" form). Elsewhere David Cameron hammers yesterday's piss-take by Darling.

"I think the Labour Party should be haunted for a decade by what we saw yesterday in terms of irresponsibility, basic deceit and complete lack of moral principle"

Update: 11th Dec 9am (GMT): now things become a little clearer. The piss-take I mentioned above was Brown's idea (and Balls).

"Alistair Darling wanted to impose a VAT rise above 17.5% in his pre-budget report to raise extra revenue but was persuaded by Gordon Brown to opt for an increase in national insurance instead"

And the "tax on jobs" charge levelled at Darling by George Osborne is relevant not only because it could cause job losses but also because only working people pay National Insurance (NI). Increased NI would usually hit middle and even low income earners harder than "the rich". Conversely, everyone pays VAT and would usually hit those with most money to spend i.e. the rich - although I could be wrong. Blimey, it must be bad, even the BBC are headlining it. [Link]

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2 comments:

Paul said...

"Conversely, everyone pays VAT and would usually hit those with most money to spend i.e. the rich - although I could be wrong."

Well strictly speaking VAT is a regressive tax because it hits everyone regardless of income. You pay the same percentage whatever your income. Somebody earning the minium wage and buying £20 worth of petrol the same amount in VAT as somebody on £150,000 a year.

Span Ows said...

OK, that makes sense...BUT, food being exempt etc how many plasma TVs, new CD players, new "white goods" etc do the "average poor" buy compared to the "average rich"? From what you say it's the same 'pound for pound' (money wise!) but the amount of pounds spent isn't the same.