Categorised | Big Brother, Civil Liberties, Conservatives, General, Labour, Lib Dems |

Big Brother Database or Tax Cuts?

Yesterday, I wrote an article suggesting how this government could reduce taxes to help stimulate growth in the economy. This was partly a Keynesian approach, given I argued that it was possible that these tax cuts could be self-funding, if my proposals worked. The reason for this was, if we do nothing, there is likely to be a significant surge of people claiming benefits, rather than generating income for government coffers. My proposal was, if the government was going to borrow to invest, they would be better off doing so, with a natural stimulus, rather than bringing forward capital building projects which would only benefit a small section of the economy.

My proposal, amongst other things, was that government should reduce the basic rate of personal tax by 5%. Over a period of 3 years, this would cost around £45bn, less than 10% of the cost of the banking bailout. However, by allowing us to retain more of our own money, we could decide how and where we would spend the extra money we were ‘permitted’ to retain. If we were to spend it in much the same was as we did before the crash, my argument was and is, that more small and medium sized business would survive and therefore more people would remain in employment. I noted that some 13.5m people were employed by small businesses and these same companies accounted for, just shy of 50% of UK Plc’s output. However, I also noted, that the Keynesian approach was that government should adopt a balanced budget, that is to say, they should cut back government spending in certain areas, to allow them to invest in other areas. Having read my post this morning, addressing the usual, inexcusable typos, I decided that I should expand on my own theory.

For example, my pet hate is the government’s proposed Big Brother Database, which I think is a massive attack on the civil liberties of every person in this country and an unforgivable intrusion into our right to privacy. That said, this government, if it goes ahead with this initiative, is expected to spend some £12bn on this massive Big Brother Database. Now quite apart from the fact that we know this government has never yet managed to bring an IT project in on budget, the figure that needs to be allocated is huge.

Therefore, the question I wanted to ask was:
Which would you prefer a Big Brother Database that infringes our civil liberties and intrudes on our privacy at a cost of £12bn or an immediate 4% cut in the basic rate of income tax for at least 1 year? From 20% to 16%? – I know what my answer will be.

Then I went on to look at other large government capital expenditure projects, this time I focused in on the much criticised NHS Database Project. It is worth noting that the original cost was estimated to be £2.3bn, by 2006 that had rocketed to £12bn, with some independent estimates suggesting it could cost as much as £32 billion. Most medical professionals question the viability of this project, the public have barely been consulted on such a massive project and even though some £2bn has already been spent, there is little to show for it. So, lets be generous, and take a middle figure between the governments estimate of £12bn and the independent estimates of £32. This leaves us with a likely cost of £22bn.

Therefore, my question is:
Which would you prefer, to shelve or cancel the NHS Database or receive an immediate cut in the basic rate of income tax of 5% for at least 18 months? The reason I have said ‘at least’ is because if this additional money prevents people losing their jobs and claiming benefits, then it would be possible to extend the period of the tax cut, perhaps indefinitely.

So what of the ID Database Project. Yes, I know, this government is completely obsessed with databases, it is a pity, they do not also consider the massive security risks associated with having all of this information on computers. However, I digress, this particular project, is simply aimed at having all of our personal ID information in one place. The cost, an eye-watering £5.4bn.

So, once again, my question is, which would you prefer, an ID database where only the government and its agents see the benefit, or an immediate cut in the basic rate of income tax of 2%, for a least one year, from 20% to 18%?

My basic premis is that this government has an obsession for massive information technology projects, most of which have been so poorly considered, specified and planned that they are either doomed to failure or massive cost overruns. This governments track record of waste is well documented and appalling. Most of these pet projects are not wanted by the public and it has to be said, the vast majority will allow government to know everything their is to know about every single legal citizen in this country. Because this government is obsessed with using IT to spy and control its subjects. At this time, the biggest threat to our security (apart from the government itself) and our well being, is the state of our economy, not terrorism. Yet no-one from government has suggested shelving, postponing or cancelling any of these Big Brother databases. Even though, combined, these 3 projects alone, will cost a staggering £40bn. If the government were to add an extra £5bn, we could all benefit from a reduction in the basic rate of income tax of 5%. From 20% to 15%, for a period of 3 years, if we are lucky, this would be able to see us through this period of recession. In addition, as I have argued earlier, if this money is invested into the economy by us, then jobs could be saved, government would benefit from the revenues brought about by indirect taxes, business taxes and fewer unemployed claiming benefits.

So, my final question, is which would you prefer? Government to spend £40bn on 3 highly questionable information technology projects at a time of this massive economic downturn, or more money in your pocket. £40bn on IT projects, or a 5% cut in the basic rate of tax for 5 years. QED!

Footnote:
I have also argued strongly for a significant, simultaneous cut in the Bank of England bases rates from 4.5%, to 2%, with all taxpayer funded banks being ‘required’ to pass on this cut to their customers. This will reduce the number of repossessions and/or increase the amount of money available to us, to reinvest into the economy. I am sure there will be economists out there that can or will pick holes in my arguments, well go ahead, someone needs to come up with some ideas, because it is pretty clear to me, this government hasn’t got a clue, the Conservative Party has backed themselves into a corner with their negative, one size fits all ‘austerity’ assessment of our economic future and none of the other parties have any influence. Sad, but true!


Warning: file_get_contents(http://web.wikio.co.uk/getnote?u=1f515994bf6a57bf403d8bc4700c32f0&i=54.224.155.169&referer=1f515994bf6a57bf403d8bc4700c32f0): failed to open stream: HTTP request failed! HTTP/1.1 404 Not Found in /home/hughes/49MHP6KJ/htdocs/power/wp-content/plugins/wikiovote.php on line 40

1 Comments For This Post

  1. Old Holborn Says:

    Maybe your readers would care to join me on WEdnesday November 5th

    I really, really have had enough

    http://bastardoldholborn.blogspot.com/2008/07/old-holborn-is-going-for-walk.html

6 Trackbacks For This Post

  1. Gordon Brown to offer tax cuts for Labour Supporters | Power to the People! UK Politic's Blog, Commentary and Opinions Says:

    […] is needed is a simple and properly funded fiscal stimulus, which benefits everyone, not one section of the community. Everyone is suffering from the downturn […]

  2. David Cameron divorces New Labour spending plans | Power to the People! UK Politic's Blog, Commentary and Opinions Says:

    […] shelved until such time as the economy recovers, this would include everything related to ID cards. The public would rather have tax cuts than a Big Brother Britain database, you don’t need a poll to tell you […]

  3. LibDems to launch Freedom Act to remove state spies « Big Brother Britain & Civil Liberties Says:

    […] introduced or announced. At the very least, this should include the database proposed in the new Data Communications Bill intended to record every call, text message and email we send or receive, in addition to spying on […]

  4. LibDems announce new Freedom Act to return liberty and freedom | Power to the People! UK Politic's Blog, Commentary and Opinions Says:

    […] introduced or announced. At the very least, this should include the database proposed in the new Data Communications Bill intended to record every call, text message and email we send or receive, in addition to spying […]

  5. ONSET a profiling tool that discriminates based on probability | Power to the People! UK Politic's Blog, Commentary and Opinions Says:

    […] must exert more and more control over its citizens and the introduction of ONSET, DNA Databases, call and email monitoring, registration of travel information and so on is giving them precisely that. For those that think […]

  6. ONSET: Government tool for profiling children and this is not discriminatory? « Big Brother Britain & Civil Liberties Says:

    […] must exert more and more control over its citizens and the introduction of ONSET, DNA Databases, call and email monitoring, registration of travel information and so on is giving them precisely that. For those that think […]

Leave a Reply

Advertise Here