Thursday, April 1, 2010

It's getting tasty

Yesterday 23 businessmen came out in support of the Tories' plans to only raise National Insurance on people earning over £40,000 or so.

The Tories naturally have made a great play of this. Labour plans on increasing National Insurance across the board, one of their more visible measures to show they are starting to get tougher on cutting the deficit.

It's funny though, because this tax increase is quite illogical given Labour's standpoint as not wanting to cut the deficit right away to hamper the recovery. This NI increase comes right at the time the economy is recovering.

On the other hand, the same can be said for the Tories. Their main bag is cutting the deficit yet they are cutting back taxes, one way to cut that deficit. However, of course, the Tories are more about cutting down the size of government and hence cutting spending rather than raising taxes.

So that means "efficiency savings", or "spending cuts" to anybody outside Westminster...

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