A Budget of woes? Where has our imagination gone?

George Osborne has the chance to do something really radical tomorrow in his Budget statement. He must cut public spending to shore up Britain’s precarious economic situation – he has no choice. But the fiscal crisis also means he can do far more than this. Indeed, the Chancellor has perhaps the best opportunity in a generation to make the sweeping changes necessary for the UK to reduce the size of the state and restore economic growth.

Imagine using the Budget to restructure how we tax: flattening income taxes, reducing corporation tax, getting rid of bizarre exemptions to VAT, abolishing inheritance tax along with Capital Gains Tax and simplifying enormously the tax rules for individuals and businesses…

 

Read the rest of the article at Reuters.

Well said! If not now, when?Some people are arguing: leave government spending where it is, and put taxes up (especially on the rich) to pay for it.But our problem isn’t that taxes are too low (!) — it’s that government spending is far too high.And many of the reductions will have to be where most of the spending is, namely on the welfare state.

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