November 25, 2008
The economy is big news in Britain as it is in America. When we sneeze at home, the British catch cold.
British Prime Minister Gordon Brown announced yesterday a small cut in the value-added tax, which is applied to virtually all purchases. In addition, he wants to increase the income tax to 45 percent for people making over 150 thousand pounds. That’s close to the income level Barack Obama wants to tax more.
A two and one-half percent cut in the value-added tax won’t send people flocking to the stores. And a 45 percent tax on income for the so-called “rich” won’t be enough to recoup the lost VAT income or payoff the huge borrowing Britain plans.
Two major newspapers – the Times and Telegraph – are calling for tax cuts and reduced government spending. But reducing spending in Britain and in America would mean politicians losing control over their people. When that happens, people are forced to become more independent of government and self-sufficient. And when that happens, politicians lose power. Power is what it’s all about in Britain and America. A real stimulus would reduce spending and put more money in the hands of people.
Cal Thomas is a nationally syndicated columnist based in Washington, D.C.