Sunday, February 19, 2012

Ed Balls Calls for Tax Cuts to Boost Growth from Zero

Ed Balls was on the Marr show this morning and also has an article in the Sunday Times ahead of the budget, advocating tax cuts to boost growth. He repeats his long-standing call for a reversal of the consumer whacking VAT hike and comes over like a born-again Nigel Lawson in his article:

…cut the basic rate of income tax by 3p for a year. Or raise the income tax personal allowance to more than £10,000… It would be better to cut VAT now — it’s fairer and quicker and would help pensioners and others who don’t pay income tax. But any substantial tax cuts to help households and stimulate the economy would be better than doing nothing.

Tax cuts won’t scare international bond markets, even the austerity friendly IMF is advocating a VAT cut for Britain, government gilts are propped up by QE (for now) so the issue of bond market vigilantism doesn’t arise.

It was a mistake to hike VAT and it is a strategic error to burden industry with crushingly high green taxes and penal marginal income tax rates of over 50% discouraging entrepreneurs from coming to invest in Britain. If the government is going to miss the deficit target, and it is, miss it because the government slashed taxes to grow the economy. The international bond markets will forgive a finance minister with a growing economy who misses his deficit target, they won’t forgive a finance minister with a contracting economy in any circumstances. Chancellor Zero knows that with no growth there is no hope for the deficit.


Seen Elsewhere

‘Queers for Palestine’ | Milo Yiannopoulos
Tories Attack Labour on Tax | Mark Wallace
UKIP No Flash In Pan | Matthew Goodwin
12 Signs It’s Time to Get Out of Gaza | Slate
Mars Lawyers Slam Plain Packaging | CityAM
HealthCare.gov Construction Cost $840 Million | Wall Street Journal
Why Do Feminists Oppose Stay-at-Home Mothers? | Laura Perrins
Chris Cook’s “Excellent Journalism” | Iain Dale
The Deficit Hasn’t Gone Away | Tim Montgomerie
Doctors Against Burnham | Mail
Privatisation is Good for the NHS | John McTernan


new-advert
Westbourne-Change-Opinion Guido-hot-button (1)


Knifed former civil service chief Bob Kerslake on his recent troubles:

“Many thks for kind wishes following back opn. Incision measured 16cm. A pretty big knife in the back! Photos on request.”



TJ says:

And i’ve noticed that 100% of Guido Fawkes staff are men. Looks like Guido has a woman problem. Or is it an hypocrisy problem?


Tip off Guido
Web Guido's Archives

Subscribe me to:






RSS


AddThis Feed Button
Archive


Labels
Guido Reads