howard mcsweeney1- Location: Dover
- Registered: 12 Mar 2008
- Posts: 62,352
#1
report from the o.e.c.d.
Economic recoveries tend to be feeble after financial crises," Pier Carlo Padoan, chief economist at the influential think-tank, wrote in Prospect magazine. "This is certainly the case in Britain."
While he saw the Government's planned spending cuts - £81bn over four years - as "appropriate", he said more could be done to improve the UK's prospects.
The Government could avoid some of the cuts, which slow growth, by ending VAT discounts and exemptions on items and services such as food, transport and domestic fuel, Mr Padoan suggested.
It should offer extra financial support to poorer households and tackle high youth and long-term unemployment through better access to good training. Mr Padoan also advocated further rises in the retirement age and said council tax and stamp duty should be abolished in favour of a tax better tied to property values.
The Chancellor is likely to face renewed calls for stimulus measures when the UK's growth figure for the second quarter is published on Tuesday. Economists' predictions are gloomy, with many expecting it to be close to zero, possibly negative.
Guest 655- Registered: 13 Mar 2008
- Posts: 10,247
#2
His analysis about the need for more action to stimulate growth is correct his suggestions are certainly not.
Guest 710- Registered: 28 Feb 2011
- Posts: 6,950
#3
My, my. What a wondrous thing the mind is, to be sure. On reading the above my temper changed as traffic lights do; from Red to Green.
From word one from PCP (a street narcotic, if memory serves?) the light shone brightest crimson in my mind, the colour of (ordinary) blood. To the point that I wished to shake this fellow warmly by the throat; VAT on food and fuel, indeed!
His next batch of homily solicited in me an amber note of caution. As is likely each time I come across something that rings in me with the voice of 'Dave' or his ilk; offer extra financial support/training. Yea, right!?
Green for go-man-go at long last with his advocacy of Land Value Tax.
There must be far more emphasis on reducing tax breaks for those who hardly need them. Not to think of increasing taxation at this time is all but a crime against the population at large. Grrrr!
Ignorance is bliss, bliss is happiness, I am happy...to draw your attention to the possible connectivity in the foregoing.
Guest 698- Registered: 28 May 2010
- Posts: 8,664
#4
Barry there is one thing the French do which I think we could copy, VAT on all but fresh unprocessed food is 5%, this rate also applies to restaurant prix fixe menus under a certain price.
I'm an optimist. But I'm an optimist who takes my raincoat - Harold Wilson
howard mcsweeney1- Location: Dover
- Registered: 12 Mar 2008
- Posts: 62,352
#5
the bit i found odd was that the writer went on about protecting low income households then suggested whacking v.a.t. on food, transport and fuel.
how you can kickstart a recovery by taking away spending power is open to question.