The Peace Party wonders, having seen a recent article in the Evening Standard by Stephen King, how long it will take for the Government to realise that taxes do … not … provide income for its spending.
The Government has sole charge of the sovereign currency for which it is responsible – the Pound Sterling. It … can … issue all the money it needs for the services for which it has responsibility. It can ensure that there is full employment and no poverty – but it must take full charge of how the money is used – down the line – and how it is destroyed in the taxes it levies.
Today (18th July, 2019) the Office of Budget Responsibility shows that, as a government body, it does not understand either! It refers to “government/public borrowing” (when that process is totally unnecessary), “tax receipts” (when taxes pay for nothing), “budget deficit” (when it can balance its books every day) and “national debt” (when it can only owe money to itself!).
Voters do not have to be treated as if they can only understand the running of the country as if it’s like running a household. The country (nota bene) is … not … run … like … a … household.