Not even the most extreme anti-state slasher thinks the books can be balanced only by expenditure reductions.
Lots of us do actually. So, wrong assumption, do not pass go, do not collect £200.
The rest of your piece is simply nonsense precisely because you make that incorrect assumption.
Here\’s a plan to warm the hearts of the most Keynesian amongst us.
Assume that Keynes is right, that cutting expenditure now would lead to further economic downturn.
Well, of course, that\’s only true of spending that occurs inside our own economy and triggers the multipliers. Tax money that we ship abroad does not have this effect.
Great, so, we can cut the £1o billion on DfID without any effect on the domestic economy. In fact, if we didn\’t send that abroad but spent it at home then we\’d have the multiplier would we not?
Similarly the £16 billion (or perhaps £6 billion nett) that we ship off to the EU.
So, there we go, huge spending cuts that won\’t collapse the UK economy, rather, will improve it.
No, not an entirely serious suggestion (except about the EU) but it does show that there are many more options than just sticking up taxes.