Go for Growth George

Government spending is approaching 50% of GDP, taxation is almost 40% of GDP and the consequent budget deficit is unsustainable. The choice is either taxes rise to finance government spending or government spending is reduced to balance the budget in line with tax revenues.

The British economy can not support a level of taxation above 40% of GDP, investment and enterprise would be driven away. To pay down the government’s debts we need a growing economy, creating wealth and tax revenues. We are already over-taxed, the productive sector of the economy is intolerably burdened by taxation to pay for the unproductive. If we want to grow the economy and balance the budget we can’t risk further increasing the overall tax burden.

Increasing VAT will reduce consumption, punish the High Street and burden the poor more than the rich. Before the election the Coalition’s leading political figures were asked time and time again: would they raise VAT? Time and time again they said they had no such plans. Trust in politicians is at a low, if George Osborne raises VAT or widens the scope of the tax he will be doing so without a mandate and it will betray what little trust was placed in his oft repeated claim that he did not plan to raise VAT.

Worst of all, it will take money out of the economy which could undermine the recovery. The City is not asking for tax hikes, the gilt market only wants spending control and the polls say the public favour spending cuts. George, the choice is clear, bring the economy into balance by controlling spending, reducing the tax burden and going for economic growth…



Tip offs: 0709 284 0531
team@Order-order.com

GuidoFawkes Quote of the Day

Mary Creagh’s coded attack on Ed Miliband…

‘I want the country to be united behind a single vision, we aren’t going to do it by sort of having a Rubik’s Cube approach to politics’. 

Top Posts This Week

Guidogram: Sign up

Subscribe to the most succinct 7 days a week daily email read by thousands of Westminster insiders.

Facebook

UN WARNS THERESA MAY OVER SNAPCHAT UN WARNS THERESA MAY OVER SNAPCHAT
Environment Minister Totty Watch: Double Trouble Edition Environment Minister Totty Watch: Double Trouble Edition
PPS Reshuffle in Full PPS Reshuffle in Full
Irish billionaire injuncting media Irish billionaire injuncting media
GIANT JUMPING ROBOT CHEETAHS GIANT JUMPING ROBOT CHEETAHS
Carswell: It Was Ugly Carswell: It Was Ugly

Tom Watson’s Militant Money Tom Watson’s Militant Money
CLIMATE CHANGE COULD TRANSFORM HULL INTO ‘VENICE OF THE NORTH’ CLIMATE CHANGE COULD TRANSFORM HULL INTO ‘VENICE OF THE NORTH’
TAXPAYERS’ DE-RISKING VENTURE CAPITALISM TAXPAYERS’ DE-RISKING VENTURE CAPITALISM
It’s Not Easy Being A Green Tesla Driver It’s Not Easy Being A Green Tesla Driver
Investors Dumping Mirror Shares Investors Dumping Mirror Shares
BBC Conditioning Public to Back UN Climate Agreement BBC Conditioning Public to Back UN Climate Agreement
The Queen: Psychoactive Drugs The Queen: Psychoactive Drugs
Fifa Was Doooooomed! Fifa Was Doooooomed!
Mary Creagh’s Leadership Bid Crashes and Burns Mary Creagh’s Leadership Bid Crashes and Burns
Top LibDem: All MPs Lie Top LibDem: All MPs Lie
Awkward Ed Bercow Moment Awkward Ed Bercow Moment
Algenol: Fuel of the Future Algenol: Fuel of the Future
ENCRYPTION COMPANY HEADS TO SWITZERLAND TO FLEE NSA ENCRYPTION COMPANY HEADS TO SWITZERLAND TO FLEE NSA