The 'Britain is open for business' budget does all it can to make the structural deficit worse. At the moment the state sector is heavily in financial deficit, the household sector about breaking even, and the banking, company and overseas sectors are running big surpluses. It is evident that the state can only reduce its deficit position to the extent that the sectors currently in surplus have their surpluses brought down which requires them to be more heavily taxed not less. Of course the overseas sector can not be taxed, and to the extent that it contributes to the PSBR then that has to be addressed by exchange rate adjustment. But the banking and commercial sector could be taxed a lot more heavily than they are at the moment. By further reducing the take of corporation tax, the surplus of these sectors will be boosted and the deficit of the state sector increased.
-----Original Message----- From: [email protected] [mailto:[email protected]] On Behalf Of robert mckee Sent: 28 March 2011 15:31 To: [email protected] Subject: [Pen-l] Britain is open for business - wide open http://thenextrecession.wordpress.com/2011/03/28/britain-is-open-for-business-wide-open/ _______________________________________________ pen-l mailing list [email protected] https://lists.csuchico.edu/mailman/listinfo/pen-l The University of Glasgow, charity number SC004401 _______________________________________________ pen-l mailing list [email protected] https://lists.csuchico.edu/mailman/listinfo/pen-l
