Invisible hand grasps the truth

Interesting piece of analysis which has just come to ETTL's attention; much as this blog has done, the venerable (if somewhat eccentric) Adam Smith Institute has called for a raising of income tax thresholds such that the first £12,000 would be entirely burden-free. Good stuff!

The ASI reckons this would be equivalent to an extra £1,730 in the average Brit's pay-packet; thus it would be a truly Keynesian fiscal stimulation far in excess of yesterday's VAT cut. This extra £19bn could be financed by oh, I don't know, ID cards? Aircraft carriers? The government waste bucket is overflowing with possibilities.

Generally speaking the average Leftie is smarter than the average Rightist, perhaps because some of the Left's best ideas are rather more difficult to grasp than the lack of delayed gratification in, say, helping others. But in economics ETTL has nothing but respect for the ASI and others; in these times of economic hurt they should be listened to more than ever. Left and Right are coming together to demand tax-cuts at the bottom; perhaps for the wrong reasons, but a sound way to proceed nonetheless.