Friday, November 24, 2006

Let's give it back

I'm struck at budget time with how proud the minister appears to be that he took in more money than intended as if he has somehow created more money (which as minister he can do but that fuels inflation), when it fact he has simply taken more of the public's money out of circulation than he had actually intended.

I can't help but feel that there is something wrong about the smugness involved in all this. Given that much of the increase this year is as a result of house prices running ahead of where they were expected to, it seems doubly cruel.

My suggestion would be why don't we do what the US federal government does and issue rebates or one off increases in tax credits when this happens? That way we would all share in the wealth that results from our economic activity.

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