Brits cut the budget 25%

[highland145]

Guess we'll find out which economists are right. Cutting or massive spending to invigorate the economy. The pound was up this a.m. on the news.
http://uk.news.yahoo.com/18/20100622/tbs-britain-cuts-spending-hikes-taxes-in-549cbb6.html

"We are on track to have debt falling and a balanced structural current budget by the end of this parliament" in 2014-15, he added.
Value-added tax (VAT) on goods and services would be lifted to 20 percent from the current level of 17.5 percent in January 2011, Osborne announced.
"The years of debt and spending made this unavoidable. This single tax measure will generate 13 billion pounds of extra revenues," he said.
The lion's share -- 77 percent -- of the deficit reduction measures will stem from lower spending, with the remainder coming from higher taxes.
The government will meanwhile freeze public-sector pay for two years, and slash child and housing benefits.

A balanced current budget in 5 years. That would be impressive.

 

[GTaudiophile]

LOL. I love these European austerity programs...and how they make Obama look like such an ass for opposing them.

 

[PokerGuy]

Silly Brits, didn't Obama teach you yet that you need to just spend spend spend some more? That will fix it all, not this silly budget cutting. Just print some more and go waste more.

 

[highland145]

The g-8(20) should be interesting.

 

[MotF Bane]

Looks like a pretty good start.

 

[dammitgibs]

If only socialism had failed before they could have seen this coming, well maybe we should try it one more time in the US it just might work this time!

 

[Jaskalas]

LOL. I love these European austerity programs...and how they make Obama look like such an ass for opposing them.

Our socialist President is telling these socialists countries to be more socialist. It'd be funny if it wasn't our President.

 

[Schadenfroh]

I wonder how long before our government realizes that this is necessary for the US? Or will that be the next administration's problem?

 

[kranky]

I wonder how long before our government realizes that this is necessary for the US? Or will that be the next administration's problem?

It's ALWAYS going to be the next administration's problem... until the SHTF. It's like playing Hot Potato.

 

[ichy]

England should've gutted their welfare programs a long time ago.

 

[Genx87]

I do find it interesting some of these Euro countries are scaling back the size of their govts while we increase ours.

 

[BlahBlahYouToo]

When will our states realize this is what is needed?
Christie (NJ) does.

 

[CaptainGoodnight]

It astounds me sometimes that people think that the government creates wealth.

 

[Mursilis]

It astounds me sometimes that people think that the government creates wealth.

No, I think some people just think gov't can create their wealth, such that they don't have to work for it.

 

[highland145]

No, I think some people just think gov't can create their wealth, such that they don't have to work for it.

Just look at the growth of govt jobs vs private sector. We all have experienced govt workers.

 

[GroundedSailor]

I suggest you guy look into out details of what normal spending in UK is. Even with their proposed cuts they're way above the US.

For example, the parents of EVERY child in UK gets a weekly allowance.

"As of April 2010, £20.30 per week is paid for the first child (including the eldest of a multiple birth) and £13.40 per week is paid for each additional child. The same amount is paid without reference to earnings or savings."

US has nothing like that. Comparing US to UK's level is not exactly an apples to apples comparison.


.

 

[CaptainGoodnight]

No, I think some people just think gov't can create their wealth, such that they don't have to work for it.

The problem is not that special interests are buying congressmen. The problem is that congressmen have power to sell to them. As long as they have the power, they will be able to demand a price. It's ironic that businessman dislike capitalism. Businessman can exist in any system, be it a totalitarian government of a liberal democracy.

 

[Thump553]

I wonder how bad the "conservatives" posting here would squeal if we had a 20% tax increase. Extremely loudly, I expect.

 

[CaptainGoodnight]

I suggest you guy look into out details of what normal spending in UK is. Even with their proposed cuts they're way above the US.

For example, the parents of EVERY child in UK gets a weekly allowance.

"As of April 2010, £20.30 per week is paid for the first child (including the eldest of a multiple birth) and £13.40 per week is paid for each additional child. The same amount is paid without reference to earnings or savings."

US has nothing like that. Comparing US to UK's level is not exactly an apples to apples comparison.


.

We do have a child tax credit. Not the same thing but close.

Either way, spending is relative. Look at the debt to GDP ratio for most European countries. They don't quite spend like we do.

 

[GroundedSailor]

I wonder how bad the "conservatives" posting here would squeal if we had a 20% tax increase. Extremely loudly, I expect.

Actually it's only a 2.5% increase in VAT. The total VAT has gone up to 20%. Nowhere in the US is sales tax anywhere near that. I'm sure everyone here would squeal if sales tax went up to 20%

.

 

[ElFenix]

I suggest you guy look into out details of what normal spending in UK is. Even with their proposed cuts they're way above the US.

For example, the parents of EVERY child in UK gets a weekly allowance.

"As of April 2010, £20.30 per week is paid for the first child (including the eldest of a multiple birth) and £13.40 per week is paid for each additional child. The same amount is paid without reference to earnings or savings."

US has nothing like that. Comparing US to UK's level is not exactly an apples to apples comparison.


.

income tax exemptions.

Actually it's only a 2.5% increase in VAT. The total VAT has gone up to 20%. Nowhere in the US is sales tax anywhere near that. I'm sure everyone here would squeal if sales tax went up to 20%

.

it's a 2.5 percentage point increase, or a 20 percent increase.

/grammar nazi

 

[CaptainGoodnight]

I wonder how bad the "conservatives" posting here would squeal if we had a 20% tax increase. Extremely loudly, I expect.

Probably would, but that is not what is happening in the UK. The VAT is going from 17.5% to 20%. I believe it was already at 20% before the crisis, and it got lowered.

 

[GroundedSailor]

We do have a child tax credit. Not the same thing but close.

Either way, spending is relative. Look at the debt to GDP ratio for most European countries. They don't quite spend like we do.

UK also has child tax credit which is a separate benefit from the example I posted above. Check the link I posted.

 

[highland145]

I wonder how bad the "conservatives" posting here would squeal if we had a 20% tax increase. Extremely loudly, I expect.

And the libs wouldn't? I'm sure the peeps in CA are content with the +10% income tax they got slapped with some months ago.

 

[ichy]

I suggest you guy look into out details of what normal spending in UK is. Even with their proposed cuts they're way above the US.

For example, the parents of EVERY child in UK gets a weekly allowance.

"As of April 2010, £20.30 per week is paid for the first child (including the eldest of a multiple birth) and £13.40 per week is paid for each additional child. The same amount is paid without reference to earnings or savings."

US has nothing like that. Comparing US to UK's level is not exactly an apples to apples comparison.


.

Honestly I think that kind of a system is fairer than in the US where programs like WIC, Foodstams and AFDC are only available to the irresponsible who have kids that they can't afford.