The Pre-Budget Report

I am not an economist. I don't understand most of what has been said about the economy, but there is one line, which tonight, has given me cause for grief.

The unexpected rise in NI, which will hit all those earning more than £20,000, was the most striking announcement in Mr Darling’s speech.
He said there would be another 0.5 per cent increase in National Insurance contributions – effectively a rise in income tax. It will come into force in 2011 alongside a previous 0.5 per cent rise.
Defending the tax rises Mr Darling said: “The biggest burden will fall on those with the broadest shoulders.”

(The Daily Telegraph)

Well, those with the "broadest shoulders" are having their backs broken by what is hopefully the last straw.

The New Labour odyssey has been funded by eye-watering levels of borrowing, and mendacious and deceitful thieving from those who bring wealth to the economy and civilisation to society. We pay tax. We pay National Insurance. We pay for goods that are taxed, and in some cases, such as fuel, we pay tax on the tax that is already more than 75% of its actual cost.

We are crippled under taxation. Don't get me wrong, me and mine live well, better than ever, but we have no real disposable income, for our "standing still money" - the monthly outgoings we pay before we have any say in what we spend -  has risen in real terms to egregiously unacceptable levels. As ordinary people, the choice about what we spend our money on has been taken away from us.

Take just one example: Mrs Weasel pays an annual fee to park her car at work, a necessary thing, particularly since we do not live on a bus route or near a convenient railway station. This fee is deducted from her salary, after tax. She pays it because the public service she works for was created under the Private Finance Initiative*. Her net contribution to society is a very benign and useful one. She could earn three times her salary in the private sector. But she pays for the privilege, not to the public purse, but to private investors who are siphoning off money from the public purse, money that should have gone into frontline services.

So the reality is, yet again, people who work hard are going to be the worst off. Ordinary working people are paying for the profligacy of the banks, the profligacy of this government and worse, more than anything else, the cultural and social failure of New Labour.

*PFI has been dropped by the SNP and in place a Scottish Futures Trust has been created which is billed as a not-for-profit scheme. see also: 

UPDATE: According to the Spectator, the actual rise in NI contributions will affect all those on £14000 and over.

There is only one truly right result to this. Darling and Brown should be arrested for Treason.

1 comment:

Ayrdale said...

Further arrests for treason, sedition, fraud and anything else the citizenry can come up should be directed to these people...

"...the person he was rebuking in this email, Michael Mann, was an author of this same IPCC who had his now discredited “hockey stick” included prominently in the third IPCC report to “prove” what now seems almost certainly false - the today’s temperatures are the hottest for more than a 1000 years. The Keith Briffa he attacked in the first email is also an IPCC author, whose similar attempt to “prove” there was no medieval warming is now also regarded as completely discredited. The Phil Jones that Wigley sent the first email to is another IPCC author, who vowed to keep out sceptical papers from the IPCC, urged the destruction of evidence and boasted he had used a “trick” to “hide the decline” in temperatures in anothe graph used by the IPCC...