Monday, 5 January 2009

The Pathetic Cut

David Cameron is suggesting ending income tax on savings for basic rate payers.

Well, is it good? Yes, if it were part of the abolition of Income Tax, period, but it is not, so the if and only if rule applies. No, it is not really "good". DC thinks it might result in increased spending. Fat chance. If your savings grow faster, the temptation to leave them there is greater.

And look at the numbers trumpeted. Far from cutting, Dave is suggesting an additonal £25bln MORE spending instead of £30bln - a cut of £5bln, less than 1% of the entire budget.

Pathetic. It is like a family who cannot afford to go on holiday deciding to take the tube instead of driving to the airport. 

No, Mr Cameron, you have to realise the holiday is over for now.

DC did witter on about "green technology", and that is fine as far as it goes. Not sure I want to encourage rent-seeking, however.

What was even dafter was DC's idea of some kind of independent budget watchdog. What a joke. You can see that it will end up being stuffed with Fabians and other such numpties who will interfere in the budget process and try to dictate the priorities. I suppose this is Cameron's way of getting the departments and the public in general used to the idea that the Government of the day will have no real say over spending for when the EU takes over full Sovereignty. The real key is to have a BoE which has a responsibility to the currency and thus to all those who hold and are paid in that currency - the people - not to Government. The State will then have to cut its cloth accordingly.

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