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Chancellor rules out solution to economic crisis

“I intend to continue taxing wages, good and services.”

Ahead of the spending review to be announced in Parliament on Wednesday, the Chancellor, George Osborne, stated last night that he was prepared to do anything to solve the unprecedented financial crisis – except consider the one reform that would help regenerate the economy and lead to a long term solution.

Dodgy Dossier continues…

He said that it had been suggested by many economists and organisations that the solution to the deficit depends on a reform of the tax system.

“Taxes have always been levied on wages, good and services. To make a change at this stage will, I believe, cause confusion, even if it is the correct approach. For example, it is suggested that by reducing income tax, VAT and abolishing Council Tax people will have more money in their pockets to spend. This in turn will increase demand and be of benefit to manufacturers, importers and retailers – helping to stimulate the economy and aid our recovery.

“But I believe that it is much better to carry on with the method we know and understand. I think the British people would prefer to struggle on in hardship towards national bankruptcy rather than be confused by tax reform.”

Questioned on the nature of the reform he has rejected Mr Osborne said, “Several organisations have suggested that there is a way of raising public revenue that is not a deadweight imposition on production and does not take from anybody anything they have earned. They seem to think that there is something called ‘location value’ that is created by the community and if this was collected as the annual land rental value and used as the basis for public revenue, then taxes on wages, production and other taxes such as Council Tax could be reduced and eventually abolished. They claim that this would not only encourage house building but also improve wages and increase production and enterprise.

“In an ideal world this might work very well, but I have no doubt that the British people will want to go on paying excessive taxes, working long hours and spending their lives paying off their mortgage rather than consider such any reform during these difficult times.

“I can say therefore that the simple solution of assessing location value and collecting the annual land rental value will not form part of my statement on Wednesday.”