Jump to content

Truss vows to usher in a ‘decade of dynamism’ in hint at more tax cuts


Valin

Recommended Posts

truss-vows-decade-dynamism-hint-230232273.html
Evening Standard

Sophie Wingate

Sun, September 25, 2022

Prime Minister Liz Truss has vowed to “usher in a decade of dynamism” while Chancellor Kwasi Kwarteng said their tax cuts were just the “first step towards igniting growth” as the pair were forced to defend the controversial measures.

Using more than £70 billion of increased borrowing, Mr Kwarteng announced the biggest programme of tax cuts for 50 years, including abolishing the top rate of income tax for the highest earners.

The £45 billion tax-slashing package was met with alarm by leading economists, some Conservative MPs and financial markets – with the pound tumbling to fresh 37-year lows.

Economists predict sterling could plunge to parity with the US dollar by the end of the year due to the raft of new measures.

(Snip)

Link to comment
Share on other sites

Margaret Thatcher 2.0?

John Hinderaker

September 24, 2022

British Prime Minister Liz Truss is going big. Her Chancellor, Kwasi Kwarteng, has unveiled an aggressive program of permanent tax cuts. The Wall Street Journal likes the plan:

Quote

Mr. Kwarteng axed the 2.5-percentage-point increase in the payroll tax imposed by former Prime Minister Boris Johnson, and canceled a planned increase in the corporate income tax rate to 26% from 19%. … Kwarteng also surprised by eliminating the 45% tax rate on incomes above £150,000. The top marginal rate now will be 40%.

(Snip)

As you would expect, most of Britain’s establishment reacted with horror, and British markets plunged. In the short term, Truss’s plan will increase government debt. But she is betting on growth, as Margaret Thatcher and Ronald Reagan did during the 1980s. Dan Mitchell hails Truss’s cuts and quotes a surprising admission from the New York Times:

Quote

Ms. Truss…has modeled herself on Margaret Thatcher, who was prime minister from 1979 to 1990. Thatcher’s economic revolution in the 1980s turned the economy around.

(Snip)

Lower taxes in the U.S. and U.K. ignited the best growth in recent history in the 1980s. Will that formula work again? Happily, the Truss administration should give us an opportunity to find out.

Link to comment
Share on other sites

Create an account or sign in to comment

You need to be a member in order to leave a comment

Create an account

Sign up for a new account in our community. It's easy!

Register a new account

Sign in

Already have an account? Sign in here.

Sign In Now
  • 1711688087
×
×
  • Create New...