Wednesday April 1, 2020

Government caught between a rock and a very hard place

The government may have a sense of ‘damned if we do and damned if we don’t’ when laying out the April budget

28th March, 2009

Are we about to be the first country to try to tax our way out of a recession? It will be an interesting experiment. Caught between the political pain of cutbacks and the panacea of massive tax hikes, the cabinet may well decide on the latter.

The government may calculate that cuts would to the streets and put the trade unions back offside, while higher taxes would not be as explosive. If this is the...

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