Fiscal policy

In Uncategorized on October 7, 2011 by grahamharrowell

I’ll give this one to George Osborne for nothing. It’s not my idea but was recently introduced in France and they seem happy with it. We all pay duty (as well as VAT) on beer, wines and spirits.
As well as being an item where consumption is fairly steady in the face of a price hike (as a grown-up about demand elasticity, George) there is a useful health argument to throw at opponents of an increase. Hence my suggestion that our esteemed chancellor imposes a tax on fizzy, sugary drinks. In France the initial levy of €0.01 per 33cl bottle or can has yielded enough cash to convince them to raise the duty to €0.02, effectively doubling the take. The argument that a tax will reduce consumption and support the NHS in its fight against obesity (particularly among children) and diabetes should carry the day. OK, the take may not be massive, but according to Cameron and his henchmen there is no money left. So it should at least go some way to paying for the ordnance which went up in smoke on the first day of the Libyan escapade. Or maybe pay the legal costs of the Libyan bloke we’ve rescued so that he can sue us for handing him to Ghaddafi in the first place.


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