April 22, 2009

The budget

No surprises in the budget really. Taxes have increased, because Labour always increases taxes. The country is borrowing more, because Labour always spends more than it earns. The economy is on its knees, because in the end Labour always bankrupts the country. The only difference that unlike most of Gordon Brown's other budgets they are increasing direct taxes as well as the normal indirect taxes.

They have decided to squeeze the rich, where rich is defined as people earning more than a cabinet minister, with a 50% tax rate. That this will probably loose them money is irrelevant. It isn't about what is best for the exchequer, it is about what is best for the Labour Party and by attacking people that create wealth to try and motivate some its core vote to get off their arses and vote. There is nothing like a bit of envy and spite to motivate a lefty. What is another few of billion lost? It is merely the politics of envy. It isn't the big revenue raiser, nor is it meant to be. The big money is coming from yet further rises in fuel tax, because that is almost unavoidable by normal working people since most people have to drive in order to get to work. The only exceptions are those few that work in central London or have a chauffeur driven car paid for by their work, an MP for example.

There is no money but still there will be no spending cuts. Money is still going to be hosed up the wall in order to keep Labour's payroll vote fat. Even when the economy was growing strongly Labour could not fund their payroll vote from normal tax receipts and had to take the country deep into debt. This year as revenues fall we are going to have to go even deeper, that debt is set to rise to a level not seen since the defeat of Fascism (the last bunch of Third Way authoritarians to threaten this country with destruction).

The proposed tax rises are mere drop in the ocean of debt that has been forced upon us. This is debt that they are assuming that they will be able to raise from the gilts market. This despite there having already been a failed gilts auction this year. Maybe that is the reason why deflation is being touted around? It gives the government an excuse to print extra money to pay for its excesses. Which is absolutely nothing like what a tin pot dictatorship bent on its own destruction through hyper-inflation would do. Oh no, absolutely nothing like that ... really.

It is a good thing Brown managed to get world leaders to commit to putting more money into the IMF at the G20, because we are going to need it.

Personally there is one part of the budget that I will personally be taking advantage of. This is the scrappage payment of £2000. Getting rid of my old banger would be a good thing while my money is still worth anything. It will be a good thing for me to get something more reliable which is more fuel efficient since fuel is going to be taxed even more. I will, of course, be buying Japanese.


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