Fiscal policy and the distribution of income
Article Abstract:
When the Conservative Party was in power in the 1980s and early 1990s they used their fiscal policy to cut direct taxation, increase indirect taxes and lower public expenditure. It was anticipated by some Labour Party members their party would look to use the fiscal policy to redistribute wealth, once they came to power in 1997. Studies have shown the Labour Government has increased the income of the poor. But they have focused on introducing policies, such as the New Deal, rather than increasing benefits. They had stated during the elections they would not raise income taxes.
Publication Name: British Economy Survey
Subject: Business, international
ISSN: 0263-3523
Year: 2000
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A review of fiscal policy
Article Abstract:
The UK budget deficit increase in 1993-1994, in contrast to the 1980s recession when taxation was imposed to reduce the deficit in 1981. Direct and indirects taxes increased for most people in 1995. Funding for education has not taken into account increased numbers of students, a pay rise for teachers and inflation. Keynesian economic theory points to the need for taxes to be reduced when recession appears, while monetarists seek a budget surplus where possible. Political considerations are likely to rule in the UK where tax reductions are expected prior to the next election.
Publication Name: British Economy Survey
Subject: Business, international
ISSN: 0263-3523
Year: 1995
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A review of fiscal policy
Article Abstract:
UK Chancellor Gordon Brown believes that fiscal policy should only be used to affect the economy through structural changes on the supply side. His commitment to monetary and fiscal orthodoxy has won him the support of financial markets and business leaders, but has not been welcomed by traditional Labour supporters. He is making significant increases in planned spending in priority areas, and is funding this partly through cuts in other areas, particularly agriculture and defence.
Publication Name: British Economy Survey
Subject: Business, international
ISSN: 0263-3523
Year: 1998
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