Monday, August 30, 2010

Tax rates: Is Danny Alexander being too optimistic?

Yesterday Danny Alexander told the Observer:
"I think the tax burden is necessary as a significant contribution to getting the country's finances in order ... So it will have to stay at that level for quite some time."
But is that too optimistic?

For some time Michael Portillo has been saying on This Week that he believes if will be difficult politically for the Coalition to make spending cuts on the scale it is planning.

If that is right, and cutting the deficit remains the priority, then not only will there be no tax cuts, tax rates will have to increase.


JohnM said...

we must stick by our commitment to increase the personal allowance for the low paid!

dreamingspire said...

Jonathan, forgive me for getting into your blog's space again, but isn't there a strong argument for cutting taxes as a way to stimulate the economy, and in particular to encourage the segment of the private sector that isn't dependent on the public sector for its market?