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Tax Will Rise Each Year for 50 Years 2007-01-01

Posted by clype in Articles of Interest, Money.
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If national debt is to be kept to under 40 per cent of national income — one of the stated aims of ‘The Chancellor Mr.Gordon Brown’ — then taxes will have to rise, according to the fine print in ‘the Treasury’s’ long-term public finance report: ‘An Analysis of Fiscal Sustainability‘, just published, because an extra 10 000 million GBP (in current terms) will be needed each year from 2013 onwards.

  • Taxes as a proportion of national income are set to rise from the current figure of 38.4 per cent to 40.5 per cent in 2026 and 41.6 per cent by 2056.

Last week ‘The Office for National Statistics‘ reported that the UK economy grew 2.9 per cent in Q3:2006 — the strongest annual rate since 2004.

Despite uninterrupted growth for 57 quarters, disposable incomes rose at less than half the pace of the overall economy — only 1.3 per cent — while, the proportion of income being paid out in tax continued to rise.

The latest report undermines a forecast from ‘The Treasury’ four years ago, which predicted the burden of taxation would fall. However, ‘The Treasury’ defended the discrepancy in its 2002 report, putting it down to ‘uncertainties involved in any long-term modelling exercise’.

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Comments»

1. Robert Searle. LRRB, AND THE EUROPEAN UNION. - 2007-01-23

Dear All,

There is one solution to all this. It is my research,and development project called Transfinancial Economics. It can work largely with, or against the banks, and corporations as far as its possible future introduction is concerned. It is concerned with the concept that a tax, and interest free economy is possible. Inflation can be controlled by advanced computer technology.

R.Searle


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