Where’s OUR Economic Recovery Act, Mr Brown?
Wednesday, October 8th, 2008
In 1981, Ronald Reagan signed the biggest tax cut in US history – the Economic Recovery Act. It was a bill designed to “amend the Internal Revenue Code of 1954 to encourage economic growth through reductions in individual income tax rates, the expensing of depreciable property, incentives for small businesses, and incentives for savings, and for other purpose.” Sounds great doesn’t it? The Act was a huge success - completely revitalising the US economy. What do we get in this country? We get the implementation of Labour’s 1983 socialist manifesto pledges. Brown and Darling have just announced that the government is to pump nearly £300 billion (including the Rock rescue package) into high street banks. Surely a £300 billion tax cut on corporation and income tax would have a better long term effect? Of course, Brown and Darling aren’t worrying about the long term – they’re thinking about the political short term.