Ian Blyth – It's Just a Thought

My thoughts and opinions

Archive for November, 2008

Tax the Rich – Again

Posted by Ian Blyth on 24 November 2008

The Chancellor, Alistair Darling, did his mini budget. No doubt with a lot of “help” behind the scenes from Gordon Brown.

VAT (Sales Tax if you are from the US) is down from 17.5% to 15% for 13 months. Hardly going to inspire people to shop, shop, shop given that some high street stores were having 25% and 50% sales this weekend. But there are plenty of other measures to make sure the government don’t lose too much such as putting up tax on alcohol and tobacco. Also there is no VAT on food and only 5% on fuel. SO the two mainstays of any household (eat and keep warm) will not be affected.

The sad thing is that it is back to taxing the rich but only if they win the next election as the previous election promise was not to put up those taxes. It is the old Robin Hood ploy again. Take from the rich to give to the poor. As there are more voters in the poor side it appeals to them but as many countries have found increasing taxes on the rich doesn’t bring in extra money as it makes it more worthwhile to find tax loopholes. Countries were they have low single rate tax found that their tax income went up. When will these politicians ever learn?

I watched a documentary about the US debt and they were making a big point about how US has the biggest trade deficit in the world but what was shocking was that the UK were 2nd last. And we are only a fraction of the US.

Importing more is great as long as you can afford it. But we are funding it through credit and not real money. The bubble just had to burst.

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