Posted on 04/24/2009 7:57:58 AM PDT by marshmallow
The unprecedented burden of public debt built up by Gordon Brown will not be brought under control for nearly a quarter of a century, economists have said.
Families could soon find themselves paying at least another £1,400 a year in tax as part of the Government’s attempts to bring public debt back under control, the IFS predicted.
It said there was a gap between the amount of money that would be raised by the tax measures in this week’s Budget and the amount the Government will need to fund its spending plans.
This secret “blackhole” could end up adding another £1,430 each year to the average families’ tax bill, it said.
The stark warning of a generation of austerity ahead came as Alistair Darling admitted he could not be sure his optimistic forecasts for a quick economic recovery would be realised.
“It is very difficult to be absolutely certain as to what will happen,” he admitted.
The Chancellor’s predictions for growth to resume by the end of this year and to reach boom levels again by 2011 have been widely questioned, with the International Monetary Fund suggesting the British economy would actually shrink next year - despite Mr Darling’s forecast of modest growth. “The crisis is far from over,” it said.
The IFS warned that despite the tax rises and spending cuts announced in the Budget this week, future chancellors would be forced to raise even more money to fill a “breathtaking” long-term hole in the public finances.
The scale of the problem is so great that even with years of tax rises and spending cuts, the national debt will not be low enough to meet Gordon Brown’s now-abandoned “sustainable investment rule” until 2032. This “golden rule” dictated that Government debt should not rise above 40 per cent of Gross Domestic.....
(Excerpt) Read more at telegraph.co.uk ...
Tune in if you want to see what happens when a former world power goes the banana republic route. We could be seeing a preview of something coming our way.
Wishful thinking. They’re betting the farm that more business as usual will fix things... but the hole will only grow deeper as more investment flees the country and more Muslims, deadbeats, and welfare cases flood in.
When the shooting starts, then maybe we’ll wake up.
Just send all your money to the government and they’ll return the amount you need.
Shows what happens when you run a welfare state with open borders. They need to wean some people, throw out some people and cut taxes.
But,,instead they are goind to drive out the high productive individuals. The entire finance industry could go elsewhere..and pay no UK tax. How can a country that is broke and has high taxes be the center of the financial world?
We’re in for the same.
Free stuff is expensive.
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