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.



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

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
The Emperor’s New Solar Panels The Emperor’s New Solar Panels
Guardian Departure Fuels New York Times London Speculation Guardian Departure Fuels New York Times London Speculation

Andy Burnham: Rent-Swapper Andy Burnham: Rent-Swapper
Burnham’s Paul Smith Suits Burnham’s Paul Smith Suits
FLASHBACK: You Are Subsidising Andy Burnham’s Property Portfolio FLASHBACK: You Are Subsidising Andy Burnham’s Property Portfolio
Arise, Sir Eric! Arise, Sir Eric!
ENERGY MINISTER TOTTY WATCH CONTINUED ENERGY MINISTER TOTTY WATCH CONTINUED
Stella Grills Dimbleby on Sexuality Stella Grills Dimbleby on Sexuality
New Select Committee Chair Allocation in Full New Select Committee Chair Allocation in Full
Miliband: Don’t Move to the Centre Miliband: Don’t Move to the Centre
Insta-Bunga! Insta-Bunga!
GREEN PAEDO RING RUMBLED GREEN PAEDO RING RUMBLED
BIONIC MAN CONTROLS TWO ROBOTIC ARMS WITH HIS MIND BIONIC MAN CONTROLS TWO ROBOTIC ARMS WITH HIS MIND
TECH NOSTALGIA: LYCOS SELLS ITS PATENTS TECH NOSTALGIA: LYCOS SELLS ITS PATENTS
BIN LADEN PLANNED JIHAD ON CLIMATE CHANGE BIN LADEN PLANNED JIHAD ON CLIMATE CHANGE