Basic Rate Tax Increase On The Cards?

28/03/2009 by Steve Tierney.

Basic Rate Tax Increase
There are some rumours flying around that there may be a rise in the basic rate of tax coming as part of Gordon Brown’s forthcoming ‘Bribery Budget’.  The gist of it is that, in order to try and regain some of his lost popularity he might throw some tax cuts and other sweeties at the public to get them back onside.

My response that is “Good. That’s a fair thing to do.”  My question though is Could We Afford It Now? If Gordon hadn’t blown all this money on one silly scheme after another, maybe we could. In which case, I’d applaud the prime minister (which would feel really weird.)  Trouble is, we can’t afford it. So if he does it then its got to come from increased taxation elsewhere, borrowed money, or printed money, or cuts.

Now let’s be honest , it’s not going to come from cuts because Gordon is more scared of that word than the word “sorry.”  If it comes from increased taxation I guess it’ll be the rich who they try to get to pay. Good luck with that. There are a lot of highly paid accountants who might think otherwise.

If it comes from borrowed money then first you’ve got to raise it with gilts (not as easy as he thought, that) in which case its more money for our kids’ kids’ kids to pay. Well done Prime Minister. Your party want to rob from the grave AND the womb. Talk about taxing the candle at both ends.

Of course there’s always the printing press to fall back on. More false economy, devalue everyone’s money with your monopoly currency, then give it back and claim its a gift. Kinda like an evil version of Santa Claus who steals the children’s toys then repackages them and gives them back… broken.

I know I’ve made my dislike of the Prime Minister and the Labour Party clear in the past but each day I am amazed at the new levels of revulsion they make me feel.  The public won’t fall for Gordon’s gamble, even if the rumours do turn out to be true.  Will they? 

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