Saturday, 24 April 2010

Cameron and Brown Share a Common Policy... But Neither Realise It

Cameron and Brown go on blasting away about the National Insurance increase without actually listening to each other.      If they did,  they might realise their supposedly opposite policies, are actually the same in effect.    Permit me to illustrate.

Cameron berates Brown for "wasting £6Bn" which he doesn't need to, and for planning an N.I increase next year which he calls a "jobs tax".     And Brown rips into Cameron,  claiming that to "take £6Bn out of the economy"  would be the worst thing to do before the recovery is sound. 

But Brown is mis-describing mercilessly  (innocently I think).    For, with regard to "taking money out of the economy",  that  is exactly what  taxing the populus with the extra 1% on National Insurance,  is.  Tax takes money from the economy to pay for government.    So he's describing the exact opposite of what would happen if a new Tory government cancelled his 1% tax rise:    rather than "taking £6Bn out",   that £6Bn would be left within the (commercial) economy.      


What he means to say of course, but fails to,  is it would take the £6Bn out of government funds  - which he wants to re-spend inside the economy.

Equally though,  Cameron is mis-describing :  he implies that cancelling the N.I. tax increase next year if he comes to power,  would somehow "ease" the load on businesses by not adding to 'jobs taxes'  -   but the difference is,  he  won't  spend that money back into the economy from government (because he is so adamant that we must cut the budget defecit more quickly),  while Gordon would.

This shows that both of these two policies would in fact have the same net effect.     Cameron wouldn't take the £6Bn in extra tax,  but wouldn't spend it back in the economy either;   and Brown would take the extra tax,  but would re-spend it all back on public services. 

So, despite their protestations that they are so different,  this particular sample of policy would produce results not a jot different from one another.   

One thing is sure - those spin-doctors of theirs obviously do think we're all stupid. 

No comments:

Post a Comment