Free Republic

Runaway borrowing to trigger tax rises By Chris Giles and George Parker Published: November 20 2008 23:45 | Last updated: November 20 2008 23:45 Annual public borrowing is set to rocket towards £120bn over the next two years – far higher than City forecasts – forcing Alistair Darling to announce plans for deferred tax rises and public spending curbs when he presents his pre-Budget report next week. Treasury officials say the “mammoth shock” to the economy will cause tax revenues to fall far below previous government forecasts, even before the chancellor announces what is promised to be a “decisive” temporary...

<p>Abiting economic wind is blowing in California. It brings with it a feeling of personal threat, broken promises and a sense of crisis. The economy is stagnating, while the government appears immobilized. California is losing its competitive edge. ...</p> <p>"So, population is going up, and jobs, especially good-paying jobs, are going down, public costs are going up, and tax revenues are going down. Our state cannot long operate in this way. We are on the road to fiscal disaster."</p>