Tax Cuts
There has been much talk of a significant fiscal stimulus, I was wondering what folk here thought about the possibility of tax-cuts or increased tax-credits given the prevailing economic situation. For myself, I think that the current economic problems have been geratly exacerbated by private individuals in the country living on credit, to solve a debt-problem with more debt strikes me as bonkers. It is inevitable that the P.S.B.R. will rise, tax receipts will fall and expenditure will rise to make this worse with a fiscal stimulus would be irresponsible. Government debt is merely taxation delayed. As a matter of urgency we need transparency in the national accounts, we need to include the costs of P.F.I. borrowing and (probably hypothetical) costs of public sector pension liability. Then when the recession turns into recovery the primary focus should be the elimination of the P.S.B.R. and establishment of a balanced budget. What think ye all?

Never saw a tax cut I didn't like but it needs to be funded by rigorous cutting of public sector waste and large scale rolling back of the state generally.

There's no such thing as a free lunch....... or free money. The proposed tax cuts I suspect will not provide consumers with 'cash to spend', but rather they will reduce debt and build a bunker for when all hell breaks loose - when the tax rates go through the roof. Me, personally, I'll reduce debt in equal measure to putting my cash abroad - where it's safe.