David Cameron plans massive increases in taxes
“If we had a budget surplus we could do more.” Indeed we could dear Davey boy but while the Gordon is off leading the world tackling the global financial crisis it is more telling of how economically illiterate and bereft of ideas the Tories are right now.
So here’s the rundown on how to produce a budget surplus of which I fully expect David Cameron to announce as Tory party policy at such time in the near future when he needs to get his mug on the telly.
Lessons on Swedish tax for starters. Swedish income tax is collected in two parts. Locally and nationally of which the local rate is between 30-33% yes, high isn’t it and if we add on the state income tax of between 20-25% then they could be paying anything from 50-58% income taxes. Of course if you’re of a religious nature you could always pay that tax too so add on another 1-2% an lets not forget burial taxes.
Of course Cameron could be trying to big it up on the Swedish Liberal Government’s recent announcement to cut corporation tax from 28% (same as the UK rate) to 26.3% but he might just be forgettng all the local taxes and signifcantly higher employer contributions to employees pensions.
That said, it’s easy to argue till the end of time about how much different allowances and rates are worth so we’re left with the best comparison method available to us. The good old tax take as a percentage of GDP which rather helpfully five days ago the OECD produced their latest comparison tables.
I’ll give you a hint, the press release on their website is called: “Denmark, Sweden still the highest tax OECD countries” and you can read it here.
So yes Dave, you can build up a budget surplus if you’re taking 49.1% of your entire country’s GDP in tax revenue which is probably a bit more tricky when you’re taking just 37.1% like we are here in the UK. (figures are for the last confirmable period from 2006 although the projections for 2007 don’t change much either).
Of course if you do have that much money to spend from taxation then it’s amazing what you can get for it. One of the best health and education systems in the world, some of the lowest inequality rates, basic state pensions worth nearly twice the amount British pensioners live on and of course one of the highest standards of living and life expectancy in the world but God forbid any of that hideous old fashioned tax and spend nonsense heh?
admin on October 20th 2008 in Economics, Europe, Politics, Tory Bashing