Taxes might have to rise!
Posted by michael on October 31, 2008
The front page of the Independent newspaper carries a report of a speech by the Chancellor, in which he indicated that ‘taxes might have to rise if the economic downturn is prolonged’.
Alistair Darling warned that Government revenue has collapsed because of the recession. He said that ministers would attempt to stimulate the economy by accelerating spending projects even if it meant a sharp increase in Government borrowing.
The Independent Thursday, 30 October 2008. Report by Nigel Morris, Deputy Political Editor
http://www.independent.co.uk/news/uk/politics/darling-tax-may-rise-in-downturn-978540.html
Mr Darling said that people should be in no doubt that the Government will take the necessary decisions.
It will be interesting to see the public reaction to any attempt to raise taxes at this time. Especially if the tax increases are seen to be necessary because of the greed of the Financial sector and the lack of controls by the government in power to curb these excesses.
Putting it bluntly: the Financial sector caused these problems and the goverment has allowed it to happen – so why do I have to pay higher taxes to bail them both out?
We are already one of the most taxed nations in the world. People are struggling to pay the bills. The ‘credit crunch’ is affecting many people.
No doubt there will be other tax increases required at the same time to allow for inflation and for other government projects. Unless of course the government shelve these other projects that they are planning to implement!
I think that it will be political suicide for any government to raise taxes when they have been so closely linked to the problems that the UK is going through.
