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"You can't tax your way out of a deficit"
Slarti Bartfast
Posts: 6,607 Forum Member
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But you can reduce the income of 10 million families.
Doesn't it amount to the same practice, except those who can least afford it are the ones targeted?
Doesn't it amount to the same practice, except those who can least afford it are the ones targeted?
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Tax cuts for most people of moderate means would be very useful as well.
And cutting benefits is a very significant impact on the economy, negatively.
So what have the Conservatives done? The complete opposite of that which needed to be done to help the economy pick-up!
Whether you reduce a person's tax credits by £300 or take £300 in tax the net result is the same and the same issues apply.
By suggesting you can't tax your way out of a deficit the tories are simply avoiding affecting the more wealthy sections of society.
Its the fastest growing economy in Europe, how fast are you expecting it to grow?
Except the tax is revenue, the tax credit is spending.
And your suggestion you can tax your way out of a £100b deficit by taxing the more wealthy sections of society is pie in the sky. Tax increases of that magnitude would require taxes to be raised on all of society.
The options at the next GE appear to be; Labour will increase taxes and cut spending a bit and reduce the deficit a bit, the Tories will increase taxes less, cut spending more and reduce the deficit by more.
It's funny, because the argument to support the idea also applies to public spending. You cannot cut your way out of a deficit.
The time for cuts is during a boom, the time for tax increases for the wealthy few is during a recession.
These Conservatives are just pursuing an ideology regardless of how nonsensical it is.
Food banks on the increase, zero hours contracts, gap between richest and poorest higher than at almost any time since the days of Dickens, major companies and individuals avoiding and evading tax at epic levels, wages for millions frozen or reduced
Yeah let's hear it for this wonderful growing economy
Ideologies exist on both sides so by all means take your pick but don't pretend they don't.
Btw the last recession was under the last government.
Your understanding of economics is really upside down. The people who pump money into the economy are those with high disposable incomes and who spend that money in shops, restaurants and on leisure activities. That spending creates a lot of jobs. Governments don't create jobs. Businesses do.
People on benefits don't have much disposable income so denying them of a few pounds extra a week is very harsh but has bugger all impact on the economy.
My suggestion? Where did I suggest that? Raising taxes on everybody is perfectly acceptable. Why shouldn't everybody share the burden proportionately?
The net result of that is someone pays £0 in tax. It is a ridiculous situtaion because it costs money to adminster, just don't take the tax off them in the first place.
Btw the difference is clear, taxes are a revenue, benefits are a spending.
Well if you think the Tories are opposed to increasing taxes on everybody just because it would also impact the better off you, which you implied in an earlier post, you are deluded.
Are you one of these posters who just post a variation of "I'm right, you're wrong" with no depth or explanation?
Are you one of these posters who when they don't like the reply posts stuff like the above?
so now is the correct time for tax cuts - the economy is growing at over 3%, it aint gonna get any better than this.
Your replies aren't very conducive to discussion are they? You're just repeating things like "one is spending, the other is revenue" without actually putting forward an argument as to why that matters. You seem to think your own opinion is a self evident truth.
If you don't like my replies that's fine and your last sentence reminds me of pot calling the kettle.
I've provided an explanation for my position, which is kind of the opposite of thinking it's self evident
Conversely, you've just said things like "the difference is clear, one is spending the other is revenue." If it's so clear you should be able to explain it and justify your position.
High taxes can make revenue go down instead of up, money can leave the country, take a look at France.
Cutting spending will always save the country money.
The realities of economics can be harsh.
That's true for cuts to services, but cuts to benefits reduce the disposable income of those affected just as increased taxes would.
Reducing benefits instead of increasing taxes means some people will have their income reduced a lot rather than everyone having their income reduced a little. It also means those least able to manage that reduction have to do so, while those best able to manage it don't have to.
As far as the economy goes, poorer people tend not to save as much as the wealthy. In other words they spend all their income, so reducing it is pretty much guaranteed to reduce spending.
I thought we were freezing tax credits.
The answer of course is yes.
If this is actually intended to get votes I would suggest those in charge are insane.
So say the ONS. They also say fall in living standards is greater than previously thought.
I think most working people will only swallow this so far & David Cameron has got to have a positive message tomorrow. The one thing the Tories can claim credibility is on the economy however they are split over europe, something Labour has to play on.
whose stats would you rather use?