Never has 2p mattered so much
MAYBE one could argue that the hint over income tax increases in the States a couple of weeks ago was so clear, it wasn’t hard to guess what was coming.
We predicted an income tax rise with associated mitigations, a pretty blunt push with little done ease the public into this, and something of a stalking horse, setting the scene to ensure that public finances become the election issue.
We didn’t see a tax increase being restricted for just two years – however that very effectively does create that bridge over the election.
The initial feeling is that this proposal has a chance, not least because it’s brought forward by an experienced politician skilled in manoeuvres in a way that his predecessors just couldn’t compete with.
It’s upsetting some colleagues, but Deputy Trott believes that the public might buy it as ‘the only real short-term solution’, and he might just be right.
What if some smart Alec brings a goods and services tax amendment? Deputy Trott will counter that it will still take a couple of years to start collecting the cash, when action is needed now.
The P&R president has likened the debate to a trip to the dentist at an early hint of pain. Unwanted but necessary, and even if the filling doesn’t last forever, it will stop a lot more short-term pain being suffered now.