Gordon Brown will claim today that his plans to cut taxes to keep the British economy moving have won the endorsement of leaders from the world's 20 largest economies. The Prime Minister will use the conclusions of the G20 summit in Washington to justify plans to raise tax credits for the low paid and speed up building projects on schools, hospitals, housing and transport projects.In the pre-Budget report a week today, the Government may also announce a boost to winter fuel payments. Changes to tax credits could help the 1.1m "losers" from last year's scrapping of the 10p income tax rate who missed out on compensation this year.Government sources dismissed as "complete garbage" speculation that taxes could be cut by a massive £30bn. But the Washington meeting may have given the Chancellor, Alistair Darling, more room for manoeuvre.Dominique Strauss-Kahn, the managing director of the IMF, who attended, called for nations to approve a fiscal stimulus equal to 2 per cent of gross domestic product - about £30bn in Britain. Such a move, he said, would result in a 2 per cent increase in growth. When asked where fiscal stimulus was needed, he said: "Everywhere. Everywhere where it is possible."
Gordon Brown will claim today that his plans to cut taxes to keep the British economy moving have won the endorsement of leaders from the world's 20 largest economies.
The Prime Minister will use the conclusions of the G20 summit in Washington to justify plans to raise tax credits for the low paid and speed up building projects on schools, hospitals, housing and transport projects.
In the pre-Budget report a week today, the Government may also announce a boost to winter fuel payments. Changes to tax credits could help the 1.1m "losers" from last year's scrapping of the 10p income tax rate who missed out on compensation this year.
Government sources dismissed as "complete garbage" speculation that taxes could be cut by a massive £30bn. But the Washington meeting may have given the Chancellor, Alistair Darling, more room for manoeuvre.
Dominique Strauss-Kahn, the managing director of the IMF, who attended, called for nations to approve a fiscal stimulus equal to 2 per cent of gross domestic product - about £30bn in Britain. Such a move, he said, would result in a 2 per cent increase in growth. When asked where fiscal stimulus was needed, he said: "Everywhere. Everywhere where it is possible."
Spending is indeed necessary (but investment, not consumption), only the State can do it in the short term - thus this calls for tax increases, on those that won't see their consumption affected: the rich. In the long run, we're all dead. John Maynard Keynes
I have some (not a lot, but some) sympathy for the idea that reducing taxes at the bottom end, maybe even by 4 - 5%, can provide a stimulus to the high street, which is likely to shed jobs if people rein in. And that sheeding of jobs will reduce confidence still further. I would also like to see benefits improved, ie that people below tax threshold got a bit more to cope with prices.
Naturally, I actually want taxes to rise at the top end, not just in the waged sector but I want significant tax rises and the slashing of exemptions for those who are well above the waged sector and hwo have benefitted disproportionatley over the last 30 years. I want the non-doms taxed, I want the tax exiles creamed, and I want foreign millionaire residents who currently pay nothing to contribute something.
As for spending, I really don't want to bail out hte financial institutions. We simply seem to be encouraging takeovers that make the "too big to fail" situation worse. I personally want a huge increase in social housing; we have a failing building sector that hasn't the confidence to make new build starts and a massive undersupply of affordable housing at the bottom end. This is a great opportunity for the govt to be pro-active in creating jobs and addressing urgent needs. And if I'm wishing for magic ponies I might as well ask for failing manufacturing to be skewed into the windfarm business.
To pay for it I want trident stopped, ID cards stopped, Iraq stopped, those stupid aircraft carriers stopped, the aircraft to go on them stopped, afghanistan turned into something useful. keep to the Fen Causeway
