“This year’s budget is very much a destructive one,” warns Investment Solutions Chief Economist Chris Hart. “If I had to give it a score I’d give it one out of ten.”
Hart call Budget 2015 “faulty” and “flawed” and gives the following five reasons why he thinks it’ll do serious harm to the economy:
We need growth. This is supported by tax cuts not hikes.
Tax hikes reduce our ability to save. Savings are an essential resource to support investment.
Tax on capital formation is like eating seeds, and then wondering why there is no harvest.
Expenditure does not reflect that we are in a tight spot and is growing faster than inflation or the GDP growth rate.
- The anti-growth stance of the budget means problems will deepen going forward.
Listen to the audio for more detail.