But, Giles wants to say that interest rate risers could cost the government £25bn, which he says represents a 5p basic rate tax increase (which is not true, either in quantum, or in fact because there is no direct link between government deficits and tax rates, meaning Giles should also get the runner up prize in the ‘duffer of the year’ awards for thinking so).

What P³ version of economics do we have here? Tax rates are not connected to deficits?

Yes, I get his point that tax doesn’t pay for spending – understand although perhaps not agree with – but tax rates don;t link with how much tax is collected and therefore what the deficit between spending and tax income is?

2 thoughts on “Umm, eh?”

  1. We can cut taxes and it won’t change the deficit then.
    Might even be true for transaction taxes. But in general, really?- the guy’s deranged and dangerous.

  2. Presumably Giles will be runner-up for the “Duffer of the Year” Award behind Spud – who has probably been allowed to keep the trophy by now.

Leave a Reply

Your email address will not be published. Required fields are marked *