Wednesday, March 21, 2007

Gordo Slams Wealth Producers

Tyler has just had his small businessman brother on the phone. He could barely speak, having seen his income tax rate - known as the small business tax rate- increased from 19% to 22%.

So Gordo has slammed small business- the seed corn of wealth creation. They have been sacrified to help fund the headline grabbing cut in the basic rate of income tax, and the reduction in corporation tax rate- itself necessary to stop big footloose international companies like Barclays and HSBC upping sticks and moving abraod (an option that is not open to small businesses like my brother's).

Another group of Big losers are middle income earners- those hard working families who will be caught by the increase in the top National Insurance contribution threshold.

We need to look carefully at the numbers now. But it looks like G has surpassed even his own dismal record- the losers are the very people who drive Britain's prosperity.

No comments:

Post a Comment