The government’s stealth taxes have slowly but surely taken more of our incomes. Tax Freedom has crept later, from May into June.
Now the UK government takes financial responsibility for a very large bank with a medium sized government attached, Tax Freedom Day will advance still later, beyond the half way point of the year.
You need to add annual borrowing to the annual tax take. It is now well over 50%. The borrowing takes money away from the rest of us as surely as does taxation, leaving the state free to spend more and more of our national income. Sooner or later, depending on the whims of the markets, extra borrowing will need to become extra taxation, as we seek to repay some of the debt and meet the soaring interest bills.
You cannot run a truly free society nor a successful economy at these levels of state intervention. The government needs to get rid of its overmighty banks, back to the private sector, before they gobble the available cash and jeopardise the governent’s credit worthiness too much.
Iceland and Ireland should be a warning to them. The UK is not in such an extreme position as these two small countries, but the UK state is cruelly over exposed to risk and financial commitments. The £1 billion of bonus payments the government has seemingly accepted at RBS is £ 1billion more of loss for the bank, £1 billion less the government can spend on something more worthwhile in the public sector. There is no magic money or special pot money for the banks. It is all ultimately a caim on the poor taxpayer, who is under the cosh of excess government.