The essential thing to note in this summary of what to expect is that the socialist Brown only thinks in terms of screwing the public as far as he can and rarely thinks in terms of radical changes in policy to cut the rampant expenditure to which he remains wedded.
He also hasn’t noticed - apparently - what readers of these postings have, that the exodus of companies and top executives is well under way already. This should act as a brake on any half-intelligent government in their gut-reaction to anything - “TAX IT”. The Tories appear to be aware of this and while not ruling out more tax, at least see the priority as being cutting expenditure.
Christina
DAILY EXPRESS 2.9.09
BROWN TO TAX YOU EVEN MORE
Brown set to hike up taxes to help Government debt
By Macer Hall
GORDON Brown last night signalled a fresh round of punishing new tax rises on middle-income families to pay for the Government’s crippling debt crisis.
Millions more hard-working Britons face being dragged into Labour’s punitive 50 per cent top income tax bracket, the Prime Minister hinted.
On his official first day back at work after his month-long summer break, he issued a stark warning of “hard choices and difficult choices” ahead.
And he pointedly refused to rule out further swingeing hikes in income tax to help repay massive Treasury borrowing.
“I’ve said repeatedly that there are tough choices that everyone around the world is going to face, and we are not an exception,” Mr Brown said.
Given in an interview yesterday, the grim warning will send a chill down the spine of Middle Britain.
Tory frontbencher Philip Hammond, the Shadow Chief Secretary to the Treasury, said: “Gordon Brown has presided over a fiscal disaster of unprecedented proportions – yet still does not appear to grasp the urgent need to control public spending.”
The tax burden on households – falling most acutely on those in the middle-income bracket – has risen steadily since Labour came to power in 1997. Taxation as a proportion of total national income has increased from 37.1 per cent in 1996-97 to 40.5 per cent in 2009-10.
The Institute of Fiscal Studies has estimated that the Treasury’s annual tax haul has soared by £26.4billion since 1997, more than £1,000 for every household.
And the tax burden is expected to be far higher over the coming decade as the Government is forced to repay the huge debt run up by Labour.
Petrol duty has risen by 2p a litre this week and VAT is due to rise from 15 per cent back to 17.5 per cent at the end of the year.
But the PM signalled that far harsher tax increases will soon be necessary. Government borrowing has [ie by August -cs] soared over £100billion this year and is on course to reach £175billion next year, with total Treasury debt tipped to exceed £1trillion. City bosses fear the 50 per cent income tax rate introduced at the Budget for anyone earning above £150,000 will be extended to hit taxpayers in far lower income brackets.
“It’s essential that we have a deficit reduction plan,” Mr Brown said. “We have taken very tough decisions already in the budget to raise the top rate of taxation.
“Nobody wants to raise taxes but I think people want us to show that we’ve got a sensible deficit reduction plan and one that is fair across the board to the population of the country.” Most economists believe the massive borrowing to fund increased state spending in the recession mean there will be punishing tax rises whoever wins the next election.
Mr Brown risked infuriating middle-income earners yesterday by claiming to have defended them against the impact of the economic downturn.
“I think you can see that we have tried to make sure the people on modest and middle incomes are best protected,” he said.
“At a time when you’ve got a recession, and people who have got wealth, [his definition of who has “got wealth” is not one that all will recognise -cs ] even though we do not like doing so, they are better protected against the circumstances of the time than people on middle and modest incomes, and so we’ve had to take these tough decisions.”
He also indicated the return of Labour’s “tax the rich” ideas by signalling plans for new taxes to “claw back” excessive bonuses from banking executives and City bosses. He conceded the Government will be forced to reduce public spending. But he appeared to rule out any cutbacks before next year’s election. [ie Keep the bribes going till the votes are counted -cs]
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