Sunday Times becomes ever more like the Daily Mail
The true cost of Labour tax grab: small print reveals the extent of pain for workers
Yet read the story more closely and you find that these workers all earn over £150,000 a year.
Even better, the article then goes on to describe budget winners and losers.
- Winners: first time buyers, ISA savers, Entrepeneurs, Young Families, Pensioners, Drivers
- Losers: big property buyers, inheritance tax, drinkers and smokers, offshore evaders, company car drivers
Not a bad balance I’d say.
More seriously what is also clear from much the budget comment is the structural deficit is significantly smaller than people thought. (Much of the deficit is simply due to the recession – the tax take falls and benefit payments rise. When the economy recovers these effects will disappear and what is left is the structural deficit – the tax proceeds of the imaginary bubble which we will not get back.)
This lack of precision about the size of the structural deficit must be another reason to avoid trying to close it prematurely.