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Cameron predicts "tax bombshell"

Tax cuts planned by the government will create a "tax bombshell", the leader of the opposition has warned.David Cameron told the House of Commons that the expected cuts will require further borrowing, which will lead to larger taxes in the future.This would create a "borrowing bombshell which will soon become a tax bombshell", he said.He also criticised the prime minister for saying a "consensus" had been reached between G20 nations on the need for budgetary measures to deal with the worldwide financial crisis."The real international consensus is that it's only the countries that have been fiscally responsible that are best placed to act now," said Mr Cameron."Borrowing £30 billion now will mean an income tax bill for the average earner of nearly £1,500 later."He added that tax cuts should be for life, not just for Christmas.However, employment minister Tony McNulty later defended the cuts to the BBC, explaining that they were aimed at achieving equilibrium "as early as possible".He explained that they were a "short-term" measure which would be paid back "by increased receipts".

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