May 29, 2010 2 Comments
Matthew Elliott the chief executive of The TaxPayers’ Alliance, earlier this week, issued this statement;
‘These cuts are a really good start, and a vindication of all the work we have done over the last six years to make the case for cutting spending. Taxpayers have suffered the pain of a recession and rising taxes, and they will welcome the news that a government is finally making the public sector share the burden.’
A point so devoid of logic that Spock himself would be left opened mouthed and some what lost for words. The point that Matthew Elliott seems to be making doesn’t pay any consideration to the fact that public sector workers, do, in fact, also pay tax…all be it less tax than private sector workers as generally if you work in the public sector then you get paid less.
You can’t just rely on the private sector stimulating the economy as they are more interested in stimulating their profit margins. The argument that the Con-Dems seem to be using hasn’t worked already…Labour tried it with the banks and it failed. We injected large sums of money into them, in the hope that they would lend much needed money to business. What happened instead? They either hoarded it or spent it out in bonuses. A prime example of the private sector doing what is best for themselves and not that of the country. Do they really think that we are stupid enough to believe that Tesco will run their business at a loss just to stimulate the economy? Tesco would close down the less profitable shops quicker than you could say ‘Every Little Helps’.
So going back to Matthew Elliott’s point…by the inevitable job losses that these cuts will produce the government has now reduced the amount of money they will be able to inject into the commercial/private sector and they have reduced the amount of tax they will be able to collect in general. They can’t collect income tax on people who now don’t have an income…and people who don’t have an income, generally don’t have any money to spend in Tesco or Marks and Sparks.
It’s bloody hard to ‘Live long and Prosper’ when you can’t afford to feed yourself or your family Mr Elliott!