Monday, January 3, 2011

UK Govt doesn't grasp the basics

Scenario 1

Tax comes down on everything - People have more money in their pockets, so they go and spend on consumer goods and their homes so the economy picks up

Scenario 2
Taxes go up on everything - People fearfull of their jobs, will not spend and the economy drops

The raise in petrol of 2 taxes plus the raise in the price of petrol to USD 93 a barrel means people will not buy cars and will cut back on usage of cars, therefore less income for the Government

Tomorrows raise in VAT from 17.5 % to 20% will means that people will spend less.

The worst hit will be the low paid and this will mean more will give up their jobs to go and claim benefits as they are better off.

These are just a few things. The Government has it badly wrong!!!

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