This is fun. Fifty pence says despite his reservations about monster lefty argu-threads, solo can't leave this one alone. (He left the thread twice in ten minutes just up there )
I don't know about tax hikes, but from his posts It looks like what solo's educated hard working folk need is is cuts in tuition fees and reintroduction of grants, as well as proper legislation about hours worked for people paid per year not per hour, and proper overtime payments.
Also consider that the rationalisation of public sector has its impact on income tax take as so much of its overall expenditure is on the salaries of the people that do stuff. You spend less on your public service then yes you take less income tax but you save even more on salaries, but you need to make sure the impact is not taken up in a more costly way by failings and reliance on another public service (eg gp services and ambulance/a&e), or stored up for later stings in the tail eg pfi projects.
You spend the same money on a firm that provides same service but makes a profit and you need to make sure that the profit is taxed as effectively as the wages they are no longer paying (whether that is cuts in staff numbers or what you pay them).
And you need to make sure that the firm in question is not going to need to bailed out by the local authority or similar who commissioned them to do the job and still has the ultimate responsibility to provide the service, and that by working so narrowly 'to brief' that the company doing the job does not cause extra costs to other areas. (This has been a problem in health and social care since as long as i can remember to be fair to the present government though)