Budget Cuts–UK v. USA

OK, the economy sucks worldwide.  Budgets are tight and governments don’t want to raise taxes.  It is blasphemy in the US to even think of raising taxes.  It seems to me that the US would rather put its head in the sand when it comes to taxes.

In the UK,  the Labour-controlled Council in Lambeth has erected posters saying: “The government has cut our money so we are forced to cut services.” Also, the Labour-supporting union Unison published a poster depicting a blue-coloured axe with the slogan: “Look what’s in the Tories’ first budget.”

It’s pretty much typical that Labour will point out that budget cuts mean cuts in services.  And they will happily rub people’s noses in it. Not that I totally disagree with doing this since it needs to be made clear that one way that taxes are cut is to cut government services.

Either that, or the US governments will have fire sales of their assets in something which will cause seller’s remorse (e.g., the sale of Pennsylvania’s Liquor Control Board: PLCB). In the PLCB sale, the sale will be done by auction in the hope that top dollar will be realised, but auctions can also see lower prices than hoped.

It will be interesting to see how the austerity budgets end up being received: especially in the US. Are Americans really willing to see their services cut, or privatised, just to have low taxes?


Posted 18/01/2011 by lacithedog in economy, tax, taxation, taxes, UK Politics, US politics

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