So, the laws of supply and demand have been suspended for a Tory chancellor? Because his “living wage” of £9 an hour by 2020 will (by his own admission) cost jobs. 60,000 of them, according to the OBR. Just as the minimum wage cost jobs for young people. (yes, it did – youth unemployment started its inexorable rise in 2000) so will Osborne’s living wage. But the people it hurts most will be the loudest to cheer it. Osborne isn’t even pretending this is anything more than a shameless political reach into Labour territory. It won’t make people much better off, because tax credit cuts (long overdue) mean the extra money is clawed back by the Government, and it means more tax revenue. Gordon Brown used this trick a couple of times.
Inheritance tax changes further privilege property. This is a policy I once endorsed. But it’s the privilege of property in the tax system which is, along with its shortage, responsible for Britons seeing their home as an investment, not consumption. I’ve no problem with raising the inheritance tax threshold, but make all capital equal.
Hypothecated taxation is the politics of the moron down the pub. We need roads. It doesn’t follow that Vehicle Excise Duty (a bad tax anyway -much better to get rid of it and raise more from fuel) should be spent on roads, so to put its proceeds into a “road fund” is idiocy. US roads are funded from petrol taxes, and petrol taxes are unpopular in the extreme. So politicians won’t raise them, so US roads don’t have enough money, and so bridges crumble. And that’s before the “you cyclists don’t pay road tax” nonsense. Words cannot describe how bad this policy is.
There were a number of measures I approve of – the changes to dividend taxation seem sensible and make ISAs valuable to basic rate tax-payers once more and the moves to build more homes. But this was a political budget. Osborne has got the big questions right over the past 5 years, and this budget was his reward: Its purpose wasn’t the good of the country, but to plunge a knife into the twitching corpse of Labour, by stealing their identity and parking Tory tanks on Labour’s working class lawn.
The difference between him and Gordon Brown? Osborne is a politician of Tony Blair’s class. It’s a privilege to watch such a master of the liars’ craft at work.
http://bracken.uk.com/wp-content/uploads/2017/07/logo-2.png00Malcolm Brackenhttp://bracken.uk.com/wp-content/uploads/2017/07/logo-2.pngMalcolm Bracken2015-07-10 08:52:002017-07-21 01:43:04Budget 2015 - it's as if Gordon Brown never left.