Taxing matter. . .
Today the British government announced a 2.5 per cent VAT cut in an effort to stimulate the economy. The markets loved the move and saw their biggest one-day gain ever.
The perceived wisdom in the US, meanwhile, is that tax increases are a big no no during times of recession.
And in Ireland? Our Brian increased VAT rates and introduced new taxes (sorry, levies) in his budget in an effort to, er, stimulate I suppose, the economy. How’s that working out so far, I wonder?
It’s going to be a long recession.