Davie Fotherington-Cameron may "say no tax cuts yet", but Stephen Norris has raised the old cry "Government taxing and spending over 40% of GDP is too much." Can everyone not see this is nonsense?
That 40%+ tax included the National Insurance contributions I paid when at work, and today's 40%+ total government expenditure includes the OAP I get as a result of those contributions. Also included are unemployment and other benefits. "Transfer Payments" such as these comprise some 15% or so of government expenditure. I get the payment and how I spend it is my choice, not the government's.
The core of government spending - on health, education, defence, sweeping the roads - is just 25% or so, nothing like that 40%+ claimed by the band of economically illiterates that Stephen Norris has now joined.
Posted by Richard Hall at October 2, 2006 06:06 PM