Britain's budget deficit: must do better

Standard and Poor's, the credit agency for countries, is not being very complimentary about Britain. Apparently, the country has underperformed from 2000 through 2007, dropping from 14th place to 35th (below Greece, Georgia and Romania), on a list of other European countries.

S&P also stated that Britain was one of the few countries with an increased tax burden. All across Europe, the tax burden is falling.

The Fisherman is also interested in research from the Federal Reserve Bank of Kansas City, which found that the tax burden is responsible for the fall in working hours across some Western countries. The study found that there was a 21 per cent decrease in the average working week in Britain. While there are other factors for this, it is undeniable that the tax burden also has a significant impact.

Uncle Gordon, stand warned. A fall in working hours leads to lower productivity, which leads to lower tax revenues. How will you address that? By another tax hike? That would be most counter-productive. Take heed, and cut taxes now.