Posted on 06/28/2009 10:53:14 AM PDT by FromLori
The stark evidence of the growing imbalance between what the Government raises and what it spends is likely to intensify the political row over the public finances and may strengthen calls for cuts in spending.
Treasury figures show that welfare payments will exceed income tax receipts by almost £25 billion. Normally, income tax receipts comfortably cover the benefits bill.
In 2009/10, the Treasury is expecting to take in £140.5 billion in gross income tax receipts. Social security benefits are projected to be £164.7 billion.
The disparity between tax revenue and welfare costs was identified by Andrew Brough, a fund manager at Schroder Investment Management, who suggested that the amount of money spent on social protection could soon exceed that raised from both income tax and national insurance.
According to an official Treasury forecast, benefits will cost £170.9 billion in 2010/11. That is equal to what the Government will spend on the NHS, schools and universities combined.
This year will be the first in a decade that benefits cost more than workers pay in income tax.
And the last time the threshold was crossed, in 1999/00, benefits exceeded revenues by only a small margin. Then, income tax raised £95.7 billion and benefits cost £97.2
(Excerpt) Read more at telegraph.co.uk ...
Benefits to me include payouts to banks as well.
It is that way already.
UK, the next Iceland.
The USA could well become the next Iceland yes because of welfare programs including the welfare to the banks if the smelly one nationializes the banks he socializes the losses as has already been partially done that is what happened in Iceland then as they say the rest is history.
Well obviously taxes aren’t high enough! That’s what the Messiah would say, ain’t it?
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