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Tory Leadership Runners and Riders

Ponty said:
To my mind, all that’s being described is a cash flow exercise. The govt spends then claws it back in tax. If it’s not fully recovered, it’s govt debt.
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Precisely! But no where in that system is tax required to fund spending. Tax is just an accounting exercise. Once it leaves the excel spreadsheet, it no longer exists. It doesn’t go on a return journey to spending. Tax is a product of spending, it is not causal.
 
ks.234 said:
Precisely! But no where in that system is tax required to fund spending. Tax is just an accounting exercise. Once it leaves the excel spreadsheet, it no longer exists. It doesn’t go on a return journey to spending. Tax is a product of spending, it is not causal.
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100% my dear fellow. Though be on guard, do not allow yourself to be boxed-in later when people find out that the tax liability (not the cancelled credit function) comes even before spending.
 
ks.234 said:
Precisely! But no where in that system is tax required to fund spending. Tax is just an accounting exercise. Once it leaves the excel spreadsheet, it no longer exists. It doesn’t go on a return journey to spending. Tax is a product of spending, it is not causal.
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It’s been established that if tax wasn’t collected, the whole economic system would collapse. To my simple mind, tax is therefore absolutely essential to fund spending.
 
Ponty said:
It’s been established that if tax wasn’t collected, the whole economic system would collapse. To my simple mind, tax is therefore absolutely essential to fund spending.
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Not aware of evidence that says that if tax wasn’t collected the economy would collapse. I would like to see that evidence. But only out of interest because as has already acknowledged, tax does have a function and a purpose, and amongst those functions and purposes is as a tool to control inflation, but that still does not mean that tax somehow returns to funds government spending.
 
wacko said:
But god forbid that British Citizens could vote on Brexit if they lived abroad.
Should have excluded anyone without a passport instead.
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My vote likely 'disappeared'. I got no feedback on it. Then was told later I could not vote anyway. This just ended up in a vortex when I tried to follow it up.
 
Ponty said:
It’s been established that if tax wasn’t collected, the whole economic system would collapse. To my simple mind, tax is therefore absolutely essential to fund spending.
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No that isn't the right conclusion. The reason that I said that the economy would collapse is not because the government has run out of money due to there being no tax. The reason is the hyperflation which would be the result which would make it hard for people to spend on what they need to survive before the prices go up again. Think about it, there is too much money in circulation in this scenario of no taxation, there is absolutely no need for funding from tax. The problem is exactly the opposite. There is too much money.
 
Super Bigote said:
Think about it, there is too much money in circulation in this scenario of no taxation, there is absolutely no need for funding from tax.
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Very, very clear point there. In the 'no tax' situation there is lots of money. When the so-called 'funding' has disappeared there is more money than ever. People are not thinking this through at all.
 
Super Bigote said:
No that isn't the right conclusion. The reason that I said that the economy would collapse is not because the government has run out of money due to there being no tax. The reason is the hyperflation which would be the result which would make it hard for people to spend on what they need to survive before the prices go up again. Think about it, there is too much money in circulation in this scenario of no taxation, there is absolutely no need for funding from tax. The problem is exactly the opposite. There is too much money.
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OK, bear with me, I’ve probably jumped a step. I’m saying tax is required to enable govt spending because if there was no tax, ultimately the govt couldn’t spend. I understand they can’t run out of their own currency but in that situation it’s literally not worth the paper it’s written on.
 
wacko said:
But god forbid that British Citizens could vote on Brexit if they lived abroad.
Should have excluded anyone without a passport instead.
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I’m not 100% convinced there was anything wrong with the rules regarding eligibility to vote in the referendum for Brits living abroad.

Who can vote in the referendum?
British, Irish and Commonwealth citizens aged 18 or over who are resident in the UK or Gibraltar will be eligible to vote. UK citizens resident overseas will also be eligible to vote, provided they have been registered to vote at a UK address in the last 15 years.

Source: GOV.UK
 
Bwahahaha!

https://inews.co.uk/news/politics/l...st-rates-warns-her-own-economics-guru-1757989

'Liz Truss’s team is frantically distancing themselves from her economics guru tonight after he said her tax cuts could result in interest rates of up to 7 per cent.

Professor Patrick Minford, who was named by the Tory leadership frontrunner as endorsing her fiscal strategy, said higher rates would be a “good thing” and more expensive mortgages would be “part of the adjustment”.

However, several mortgage experts warned this would lead to further annual payments on the average mortgage of about £700 a month, crippling household finances.'
 
Joe Hutch said:
Bwahahaha!

https://inews.co.uk/news/politics/l...st-rates-warns-her-own-economics-guru-1757989

'Liz Truss’s team is frantically distancing themselves from her economics guru tonight after he said her tax cuts could result in interest rates of up to 7 per cent.

Professor Patrick Minford, who was named by the Tory leadership frontrunner as endorsing her fiscal strategy, said higher rates would be a “good thing” and more expensive mortgages would be “part of the adjustment”.

However, several mortgage experts warned this would lead to further annual payments on the average mortgage of about £700 a month, crippling household finances.'
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Let us not forget, ZIRP was supposed to be an emergency measure. 5 - 7% IR’s are historically pretty low.
 
I was just amused to see Liz Truss's amazing U-turn from 'Patrick Minford is my economics guru' to 'Patrick Minford? Never heard of him, guv.'
 
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