Tax Rises Needed to Control Debt
It has been announced recently that taxes would need to rise significantly in order to control public sector debt; the Institute of Fiscal Studies suggested that Chancellor Alistair Darling would need to generate  8 Billion in new taxes this spring when the budget is announced. The suggestion has been made so that the public sector debt is kept under the self-imposed limit the government has set itself, this aim also ties in with the plans by the Treasury to improve public finances over the next five years. So why is the tax increase needed? Well the government has set itself a limit on debt to 40% of national income in 2009, without tax rises then it would mean the government would need to borrow  40bn this year and the next. ...
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