Extra pay for government employees is entirely self-financing.
In other words, it’s entirely possible that the amount of gain to the government from giving a pay rise to keep NHS employees happy in their work will more than pay for itself in terms of extra tax paid, let alone anything else.
But of course extra pay for private sector employees is not.
Reasons, obvs.
Unless Spud is suggesting that NHS employees are taxed at 100% on their pay-rises I can’t see how the “tax received” will cover the cost of the rise…
But that’s “Spudonomics” I suppose.
@JY: I suppose you could argue that some will then choose to work so much extra overtime that you get more tax in, but then that would only be because you were already paying more pay out. So it’s still 100% balls
The man’s a complete imbecile but fortunately a complete irrelevance.
Far more seriously, this afternoon the chancellor will speak. And whatever says actually matters.
@John
Far more seriously, this afternoon the chancellor will speak. And whatever says actually matters.
Only if you think a modern British chancellor has any room for manoeuvre.
She is engaged on precisely the same scheme as all modern chancellors, perhaps since WW2, some more happily than others (she’s one of the happier ones, so it makes no odds for that reason, too).
The project is to squeeze and demoralise the productive and independent class in order to shovel money into the gaping maw of the State, which is itself busily engaged in the destruction of the family, and ordinary normal society, and the reconstruction of all of us as units serving globalist interests.
At least, that’s how I see it.
This is the socialist state: they pretend to pay us. We pretend to work.
Pay doesn’t keep people happy in their work, firing incompetent management does.
Studies have shown.
In other news, Kamala Harris & Democrats are studying the results of the election in Venezuela. A spokesperson said “Maduro has triumphed there & we can here, with the support of the American people.” The American people were not available to comment.
I see that, after a sabbatical of some sort, Murphy’s chief fluffer – the utterly repellent Pilgrim Slight Return – has, unfortunately, returned to make his customary obsequious comments to maintain the Prof’s tumescence.
BiS:
Further doubts over the legitimacy of the election were sowed when official election results showed the total vote amounted to 132.2 per cent
From the Telegraph. I guess Kamala’s guys are heading for Caracas right now.
I’ve got a patent for a perpetual motion machine that might interest him.
If government spending generates more tax revenues than it costs, then how come governments have deficits?
@BraveFart
Maybe ‘pilgrim’ was actually doing some work? He’s clearly in the public sector and constantly, repeatedly and at length wrote on spud’s blog with occasional reference to how terrible his employer was.
One of his latest efforts starts “I couldn’t agree more” and I thought- I bet you f’ing will though.
I believe that Pilgrim Slight Return works for a large East Midlands housing association. It’s arguable if that’s public sector but it’s certainly dependent on public subsidy – 40k per unit during the Brown Terror, CTAX exemption between tenants, not much need to market your properties as the public sector deals with that, the bribe (sorry CI levy) incident on other developers if they want to avoid being compelled to sell properties at below market prices, and government deciding asylum claims with a housing entitlement attached when the 1930s system could deal with that part.
It’s good to have him back, but the absence is suspiciously close to 3 months – is that the length of an internet workplace ban in the 3rd sector, I wonder?
@bongo – it was maternity leave – he was having murphys baby. I believe the delivery was particularly difficult and painful. Either that or he was having his tongue surgically removed from spuds ringpiece – sorry that was last year.
Bongo/moqifen – Pleased to report that Pilgrim Slight Retard was temporarily out of circulation while undergoing assessment but he is now receiving care on Captain Potato’s community blog.
This is almost certainly a result of his saying that government spending has an enormous multiplier, while private does not.
So more spending (in this case extra salary) = much more economic activity = more tax paid on that activity (income tax plus VAT on stuff they buy plus…).
I think that’s what he’s saying. It’s complete bullsh*t of course.
So you can print taxes as well?
It’s part of Rachel Reeves’ argument that a £9.4billion above-inflation pay rise for public sector workers doesn’t require a tax rise while the made-up “£22bn black hole” that OBR didn’t see when it inspected Jeremy Hunt’s books does require a tax rise
I found it mildly amusing that he’s inadvertently pointed out that we’re taxed far too much…