Tuesday, 24 April 2012
Why UK GDP continues to lag the G7
The UK does not have a growth agenda, but a preservation agenda. Two goals and two goals only are important to the government: preservation of value of assets, and cut in taxes for the very wealthy individuals.
Q: how can a person that does not need the government (ie has private security, education, healthcare and pension income) get more money by paying less taxes?
A: Sell the idea of small government, ie low public spending. This will justify drops in direct taxation
The only people which are better off today versus 2008 are the HNW individuals. Their homes are valued higher, their total income went up boosted by salaries, bonuses and dividends (nothing you and me can pull out of the sleeve really). Their taxes have been cut.
What is the effective tax rate for the median income household in the UK in 2008 and 2012? What is the available income of this household today and then?
article link http://blogs.ft.com/gavyndavies/2012/04/24/why-uk-gdp-continues-to-lag-the-g7/#axzz1syUeCD34