1 thought on “Osborne’s Budget chips away at the top of an iceberg”

  1. Posted 24/03/2011 at 14:25 | Permalink

    It may be easier to take significant steps to simplify the tax burden when the Chancellor feels he has significant amounts of money to ‘give away’. Otherwise, the risk of even a few losers from tax changes moaning far more loudly than gainers rejoice must represent a political disadvantage he feels he can do without. Having said that, though, I wouldn’t hold your breath waiting for simplification. Taxes which in total take roughly half the national income are almost bound to be very complicated. The government, in my opinion, is right to make Step 1 identifying the government’s disastrous financial situation and Step 2 outlining plans over the next few years for some (fairly modest) reductions in government spending. Step 3 would be indicating some major areas of government interference where it is proposed to substitute non-interference and potentially (over the medium-term) save significant amounts of money. Step 4, in due course, would then, finally, be to abolish some taxes, reduce the rates of other taxes, and SIMPLIFY the tax system. But this is a ten-year project.

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