An important reminder from Guido Fawkes today:
"If all our economic woes are made in America as Gordon claims, why is that their economy is showing healthy growth (despite high oil prices) and the U.K. economy is flat-lining? Could it have something to do with George Bush's timely $150 billion bi-partisan growth stimulus package in February?"
Indeed it could. It could perhaps also have to do with the fact that the 2003 US tax cuts haven't yet been reversed - American workers and investors are still benefiting from lower federal income tax rates and a 15 per cent rate on dividends and capital gains.
But in Britain, economic woes continue. The FT reports today that two more companies - Charter and Henderson Group - have joined the taxodus to Ireland, making that four large British companies in the past five months. And earlier today the FT website reported that Regus - the serviced offices group - became the third FTSE 250 company in as many days to announce it was shifting its headquarters out of the UK - this time to Luxembourg.
So where are our politicians on this one? George Osborne has written to Alistair Darling today, urging him to cut corporation tax to 25 per cent - a welcome move, but unfortunately revenue-neutral as it will be paid for by reducing capital allowances. This giving with one hand and taking away with the other is really not good enough in these worrying economic times. What the UK economy needs is a cut in the overall tax burden, to be funded by reducing wasteful government spending. So far only the Liberal Democrats have realised this. What will it take to make the two main parties get it as well?
As Guido concludes:
"The Finkelstein "you can't win promising tax cuts" approach was always timid, it is now the wrong strategy at the wrong time. The voters have moved on, they recognise the economy needs tax cuts to grow."
With Sterling plunging today as recession fears loom, it's looking increasingly like the economy needs tax cuts to avoid meltdown.
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