Tax credits

I do not understand the economy.  I do know though that our system demands that money is circulated and that each time it changes hands tax is paid to the government, thus meaning that all of that money should end up in government vaults. Of course if you are wealthy enough and clever enough you can ensure that you pay as little tax as possible and that you can squirrel away as much as you like in offshore accounts or in other schemes designed to help the rich.

The government borrows billions of pounds in order to finance various projects. Where does that money come from?  I assume that it comes from the bank accounts of those same tax dodgers who then profit from the loan paybacks at interest rates dictated by themselves.  Public debt is huge of course and it seems that it gets worse as time passes and yet those that lead our financial organisations pay themselves millions in bonuses every year.

So this week the nasty party decide to pass legislation to take money from the poorest and according to the media, expected the upper house to rubber stamp the bill.  Of course they didn't; you don't get into the Lords by being stupid and they know well that their very existence is precarious. To pass such a bill would have strongly associated the upper house with the nastiness of the current government and given the fickle nature of public opinion and the fragile nature of the place of the house of Lords, a yes vote would have been a suicidal step.  As it is the Lords have gained credibility and the Tories will shrug off the defeat and simply change the wording of the bill which will probably be passed next time.  They are determined to claw back money from the least well off whilst happily encouraging the wealthy to get wealthier.

It is the poorest that spend money in this country; the wealthy are more likely to spend elsewhere and so it seems to me to be nonsensical  to punish the already impoverished, but as i said - I do not understand economics.