January 16, 2006

taxed to the hilt

From the governments own statistics for Average total income and average income tax payable there are only two groups in the entire country that have incomes higher than the average level of debt of £27,700, an number which does not include mortgages, males in the South East at £28,900 and London at £33,100.
on average the country's 25 million households had total borrowings of seven times their quarterly disposable income. At the height of the 1980s boom, the figure was five times.
The entire economy is currently supported by consumer spending, the same spending that is racking up the debt. Manufacturing is actually in resession.

One reason for is that the Bank of England has reduced interest rates to an unprecedented level in an effort to keep the economy going, based on consumer debt.

The other is the massive chunk stolen by the government by their extortionate taxes. So much so that for the first time in a generation the amount stolen by the british government is larger than the amount stolen by Germany from her citizens (via Raw Carrot). It should come as no suprise that our growth rate has also slowed to a more continental pace.

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