Monday, January 3, 2011

A never ending spiral

What is it about governments that they can only see tax rises as a solution to the rising cost of running the state rather than tax cuts to stimulate an economy? I suppose in one sense they are a bit leery of the public service unions throwing a kiddy tantrum and stopping vital services, though what's so vital about a lot of public services escapes most people, I doubt we'd even notice a strike by diversity co-ordinators after all is said and done, though I doubt they'll be the ones in the firing line, more likely it will be something a bit more irritating to the public though I'm damned if I know what or who.
Rising costs caused by tax or duty increases inevitably filter down to the public and non so quick as fuel duty...

Express.
FURIOUS motorists could set up crippling blockades over the soaring cost of ­petrol with prices set to hit £1.40 a litre, campaigners warned last night.
Professional and private drivers are facing huge rises in costs with duty and VAT increases adding 3.5p to the cost of a litre on unleaded over the next few days.
And experts warned that rocketing costs of crude oil, plus further tax rises could force prices even higher.
Yesterday, pump prices at many service stations across the country had soared above 130p a litre for petrol and over 135p for diesel.
David Handley, from Wales, one of the leaders of the 2000 lorry blockades which caused panic buying, said a protest was “on the radar”.
He said hauliers, farmers and other groups had been in discussions for “several months” about ways to ­revive their protests.
Hugh Bladon, of the Association of British Drivers, said: “We’re coming close to having some real civil unrest because of these rises.
“If haulage companies delivering goods to the shops are being drained of money by fuel costs, it filters down and the cost of living soars – it affects everyone.
“It wouldn’t surprise me at all if we saw more fuel ­blockades, and we would be sympathetic to the hauliers.
“There’s a limit to how much hauliers and motorists will take.”
One Leicestershire farmer, who asked not to be named, said: “There is definitely an appetite for a protest on a big scale. We need to make our voices heard.” On New Year’s Day, fuel duty rose by 0.76p a litre, while tomorrow VAT will go up from 17.5 per cent to 20 per cent.
It is expected to add about 3.5p to the cost of a litre of unleaded, which had already hit a record high by the end of 2010. A further planned duty increase in April will add another 4p to a litre.
This is without any rise in the price of a barrel of oil either, fuel is a cash cow for the government, they've even put a green levy on the stuff officially to try and stop us  using uneconomic vehicles and methods of combustion, but in reality it's just another revenue raiser. But fuel is used to transport goods around the country so expect to see food and other prices rise too, then expect to see wage demands rise as people find that what used to last the month comfortably now just squeaks them through assuming they are lucky. Expect to find the demand for certain items nose dive and businesses start to go to the wall as people stop buying extras to their lifestyle. The high street already struggling with parking charges and out of town shopping could well be killed off altogether as they can't compete and no one can afford what they are selling. Taxi, train and bus fares will rise too, so getting about without your own transport becomes more and more prohibitive. The job you have which starts at an hour when there is no public transport for all it used to pay well now is a millstone of transport cost for you and you struggle to be able to afford to work there, never mind wonder why you took out a loan for a new(er) car. You here very desperate vehicle manufacturers claim magical fuel economy figures on new models which no-one can really afford any more. So unemployment starts to rise in the private sector as the public sector is cushioned somewhat by unrealistic pay rises again fuelled by increases in local taxes that no-one can afford so easily.
Yet it would be so easy to stop in its tracks, cut the state, cut the excess from the state like the private sector has done, channel the savings into a reduction in taxes and duty. Give tax allowances to private companies who create new jobs in the UK, not transferring jobs around the UK make the UK a good place to run an international business from, even if it's just an office, it will create jobs.
No, I know it's not as simple as I make out, but it is possible and it ought to be necessary, but I suspect it will take rioting in the streets and a march on the political classes leafy suburbs before they realise that it could be their necks in the noose if they don't reduce the cost of government. It's amazing how the thought of being hung can focus the mind after all.

5 annotations:

The Talking Clock said...

The tax rises are to pay the interest on the billions we've borrowed from the banks who've lent us our own money back at interest.

The billions that we pay in interest has been given to Greece and Ireland.

Billions more have been given up to the European Empire and billions further have been handed over in the name of 'man made global warming' - resulting in the coldest December for 120 years.

Then we have international aid.

That's what all the tax rises are for.

The austerity measures are to try to balance the lunacy legacy of Gordon Brown and to try to make what running the State actually costs meet with dwindling revenues now that all industry has been declared illegal and since all British companies have been sold off to globalists who avoid taxes on their billions by having offices offshore.

Due to the latter, the little people will face ever more ridiculous 'crimes' that are dealt with by fines, as our role is to provide revenue for the globalists, the elite, and the corrupt to remain in the cosy lifestyles they've grown accustomed to at our expense.

That's the formula. QED.

TTC

Quiet_Man said...

I know TTC, I'm aware of the way the system works and who is behind it, but it will break soon, they've gone too far and the balance has tipped.

William said...

"Yet it would be so easy to stop in its tracks, cut the state, cut the excess from the state like the private sector has done, channel the savings into a reduction in taxes and duty."

It is as simple as you state above. It is also very easy to leave the EU. We just walk away without telling them.

But the only way either change will happen is if the political class is sent to live on Rockall!

Anonymous said...

I really dislike the comment about the political class being sent to live on Rockall! Surely in a sane world we would send them to die there!!

I really dont believe ordinary people have any idea of the crap that is going to be thrown our way the next few years. I cant see our current political system surviving, and I dont think that is a bad thing!!

James Higham said...

Give tax allowances to private companies who create new jobs in the UK

Now that's a good one.