The Parliamentary Budget Officer appeared before the Commons finance committee yesterday, and said that after the new sorta-income-splitting Family Tax Credit rollout that there won’t be any fiscal room for any further permanent tax cuts or spending measures. In other words, the cupboard is bare (and still reliant on further austerity to keep the budget in balance). Kevin Milligan gives a more detailed breakdown of what all of the family tax credits mean, while Stephen Gordon once again says what needs to be said, especially with what this means for the next election:
Beast. Starved. MT @davidakin: Latest from @PBO_DPB post-FTC. Short version: Fiscal cupboard cleaned out by PMSH: http://t.co/2DwOxNDiBx
— Stephen Gordon (@stephenfgordon) November 3, 2014
If oppo wants to campaign on more spending, oppo will also have to campaign on tax increases. And not just on corps and/or the 1%, either.
— Stephen Gordon (@stephenfgordon) November 3, 2014