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Tax Burden

including Budgets
flint
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Tax Burden

#30420

Postby flint » February 10th, 2017, 1:43 pm

This is taken from an ICAEW report:

" " The UK tax burden will rise to its highest level since 1986 over the next decade, according to the Institute of Fiscal Studies (IFS)
According to IFS Green Budget, published today in collaboration with ICAEW and Oxford Economics, the UK faces 15 years of austerity if the government continues to aim for the elimination of budget deficit by the next parliament." "

A sobering thought, although my children and grandchildren do not live in the UK, I think it wrong for this generation to continue to pile up debt for the next generation to pay. So, I am supportive of policies that reduce the budget deficit.

There are those that think of my generation ( I was born in 1944 ) as the financially lucky generation ( house price inflation, company pensions etc.).
A good number of them also feel sorry for those born after ( say ) 1990 as they cannot afford housing etc.
Such thinking is frequently expressed on these boards.

Should we not concentrate our thinking on the next generation, surely, most parents make personal sacrifices for the well being of their children.

Germany has a no current account ( capex exc.) budget deficit rule, it would be a good first step if we adopted this. This might stop our politicians from trying to buy votes with fiscally irresponsible policies. It seems that the present Chancellor is more concerned with keeping the current electorate happy rather than any future electorate. Perhaps this is just the way that democracies work and always will - live today, tomorrow we die.

gryffron
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Re: Tax Burden

#30477

Postby gryffron » February 10th, 2017, 5:17 pm

flint wrote: This might stop our politicians from trying to buy votes with fiscally irresponsible policies.

You first have to win the argument that govt spending is "fiscally irresponsible" [*]. Most of the parties of the left still maintain that govt spending is the driver of prosperity. Despite considerable evidence to the contrary. Although there is certainly some evidence, recently from Germany, but also continued monetarism in Maggie's later years, that stifling govt spending can stifle the wider economy.

Gryff

[*] Not with me BTW. I'm all for cutting govt taxes/spending. But there are plenty out there who still argue that austerity is "fiscally irresponsible". And it includes some economists, and many centrists and moderate left wingers. It is not just the position of socialist extremists

flint
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Re: Tax Burden

#30499

Postby flint » February 10th, 2017, 6:26 pm

Gryff

Of course you are right to say that fiscally irresponsible means different things to different people.
My particular target at present is the current Chancellor rather than the socialist extremists that you mention.
He seems content to increase borrowing for the remaining years of this government.

The argument that gov't spending today is the driver of prosperity is OK, if, one is talking about investment ( infrastructure etc. ).
Clearly more investment is needed, money is cheap, an opportunity is being missed to boost future prosperity.

What I am concerned about, is that the anti-austerity folk want to see increased current account spending,

I would be more than happy if our economy was as healthy as that in Germany. I am not aware ( probably through ignorance ) of any stifling of their economy caused by stifling of gov't expenditure. The trade figures announced today seem very robust. Not that I want to discuss this point, but, the Germans have an enviable record of investment since the end of WW2.

We need a coherent policy to address the issue of the deficits incurred today that our grandchildren will have to pay for.
We have been living beyond our means for ( at least ) 50 years.


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