"What I fail to see is how the economy receives a major stimulus from, for example, a £5 cut in the price of a £220 imported flat-screen television or a 50p cut in a £25 restaurant bill. Surely it would be much more sensible to put money directly in the pockets of low-paid workers by cutting their income tax, rather than offering them a pathetic £25 and, if they earn over £20,000 a year, the prospect of tax increases.
"The Government have at last, after 11 years, acknowledged that there is a problem of inequality relating to the tax system. What they propose is a higher rate of tax for very high earners, after two years-possibly. What is needed, surely, is a comprehensive approach which involves cutting income tax for low-paid middle-income families and removing the vast plethora of tax reliefs and allowances from which the wealthy benefit, rather than this very limited fig leaf for redistributive policy.
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Monday, November 24, 2008
Vince Cable's response to the pre-budget report
The Liberal Democrat website has the full text:
I agree wholeheartedly with VC's comments.
ReplyDeleteI have also made a couple more points about today here regarding why today was not treated as a full budget and about why the government is effectively being allowed to bind the hands of the next two parliaments.
Love the way he spat out "pathetic"
ReplyDeleteVince Cable - as ever the most impressive of the three financial spokesmen. I thought everything he said was bang on the money (no pun intended).
ReplyDeleteWhat a shame that I have decided after this I must vote for the one party that can beat Labour - and round here, that means the Tories. He would have earned my vote many times over long ago if I lived in a Lib/Lab marginal.