Monday, 5 January 2009

Brown offers to help savers

I noticed an interesting little headline on the front page of today’s print version of the FT. It said “Brown pledges to help savers as Bank eyes lowest rate since 1694".

The article followed up with a typical Brownite quote: “We are looking at means by which we can help pensioners and others with their savings. That is one of the things we will look at in the run up to the budget and I am very conscious that people who have saved money all their lives need the best deal possible.”

What help could Brown offer with interest rates falling to zero and equity prices crashing? It can be only one thing. Brown is going to give another tax holiday. He will temporarily suspend withholding tax on interest payments. It is, of course, yet another terrible idea. Reducing taxes on interest would further weaken public finances, and would do little to support savings.

Isn’t it time to call a halt to all this half-baked policy inventiveness? This country would be better served with greater fiscal responsibility and higher interest rates. Macroeconomic stability – that is what we really need. In other words, no more boom and bust.

9 comments:

Mark Wadsworth said...

Agreed. I'd rather pay 40% tax on 6% interest than get 1% tax free.

dearieme said...

No more Broon and bust.

Anonymous said...

I think this is merely stealing another tory policy.

Macroeconomic stability??? You be telling us next you belong to the "do nothing" party. How heartless can you be?

Nick von Mises said...

I suppose Cameron being on TV saying exactly the same thing, before Brown, is unrelated

Anonymous said...

AC: "What help could Brown offer with interest rates falling to zero .."

Excuse me, interest rates didn't just 'fall' to zero, they were driven toward zero by .... Gordon Brown's government. Now he says he wants to 'help' savers. Honestly the man is a mental spastic.

Sebastian Weetabix said...

When Gordo McDoom has the printing presses in full swing to give us quantitative easing everybody's savings are going to be worth f*** all anyway in the resulting inflation.

Rick said...

A new Broon sweeps clean!

Anonymous said...

I don't see a savings tax holiday weakening public finances too much. As MW is hinting towards: it is the opposite for the govt. Tax revenues have already been drastically cut with the falling interest rates, so they may as well lose the 20/40% of 1% and get a small political boost from looking like they are doing something.

Markbaldy said...

The best thing Brown could do to help savers is commit suicide.
The man is a menace and doesn't know the meaning of fiscal responsibility.
He has no respect for common sense or decency - he should be ousted ASAP.