The global recession (are we allowed to say that now?) is pinching the purses of more governments than just the US.
In the UK, the top wage earners are about to feel the effects of a 50% tax rate, according to Chancellor Alistair Darling. The new tax rate will apply to earnings in excess of £150,00 (about $218,000 US), beginning next year. That represents a hike of 10% – from a top rate of 40%.
Also smacking top wage earners is the loss of personal tax allowances – similar to US exemptions. That would be phased in for those earning £100,000 ($145,000 US) or more.
Other tax increases, which will be spread among UK residents, include 2p on fuel, 1p on a pint of beer and 7p on cigarettes (that’s right, the UK is raising taxes beer again). Hard liquor and wine will also see increases: 4p on a bottle of wine and 13p on a bottle of spirits.
The Chancellor claims that there are no other alternatives. The UK is suffering its biggest losses in revenue in recent years. The Chancellor reported that, for 2009, it appears that the economy will face its worst year since the Second World War. The Labour party (kind of like our Democratic party) has been widely criticized by its handling of the economic crisis, with the Tories (the equivalent of our Republican party) calling it an “utter mess.”
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These supposedly learned people see no other alternative than to raise taxes?
Years of college at the finest schools the western world has to offer and they come to only one possible course of action?
When an individual spends more than they make and goes into debt, does that person have no other alternative but to go to their boss and demand more salary?
Our leaders think most of us are stupid. Maybe they are right.