Posted on 09/30/2022 9:56:17 AM PDT by ChicagoConservative27
The British pound hit a record low against the dollar on Monday after UK Prime Minister Liz Truss, a fan of “trickle-down economics,” announced a sweeping spending and tax cut plan to rescue the British economy from recession on Friday.
What’s happening: Investors were taken aback by the new government’s choice to institute its largest tax cut in 50 years while boosting government spending and borrowing with inflation near 40-year highs. Citibank analysts called the decision a “huge, unfunded gamble for the UK economy.” Markets dropped precipitously on the news.
But Truss took a cue from former US President Ronald Reagan as she defended her actions. The government is “incentivizing businesses to invest, and we’re also helping ordinary people with their taxes,” she told CNN’s Jake Tapper last week, referencing Reagan’s trickle-down ideals.
So is she right? Let’s dust off our history books and see.
Interesting parallels: When Reagan arrived in Washington in 1981, inflation rates were nearly 10% and tight monetary policy had taken interest rates to over 19%. But much like Truss, Reagan argued that massive tax cuts and deregulation would stimulate productivity and he championed a sweeping tax cut that was passed by Congress that year.
Truss’ government points to that as proof that lowering taxes doesn’t necessarily drive up prices. Inflation fell and growth surged under Reagan, it says.
But the policy came at a price. According to US Treasury estimates, Reagan’s tax cuts reduced federal revenues by about 9% in the first couple of years. Meanwhile, unemployment kept rising.
(Excerpt) Read more at cnn.com ...
I remember how awful the economy was under Reagan and huge groundswell of desire to bring Carter back. (/sarcasm)
What a moron!
That’s Not true. My neighbor who is retired has his pension and Social Security taxed. Maybe if you’re over a limit they tax it. God knows they don’t want anybody to have a little bit of money in their pocket.
Didn’t work, huh? Fooled me, and I was there.
https://www.fool.com/retirement/2019/12/14/why-are-social-security-benefits-taxable.aspx
Nice try. It was a reagan in 1984.
Why? Was Reagan’s hand broken? They sign the crap.
That has to have been a recent development, or something has gone wrong with his accounting and they’re counting pension as additional income. Nobody I know who is fully retired has their SS taxed.
Either that or the Democrats and RINOs override a veto. They hated Reagan enough as it was.
true ... I worded it poorly ... it seems that presidents are ‘solely’ blamed by the general public and I don’t think they even know that congress is heavily involved. The rats take advantage of that ignorant public perception.
“This author is a ditz “
In CNN, every entity (nope, they are not persons) is a ditz.
Had congress kept spending to inflation rates we wouldn’t be $30T in debt right now. But congress, R&D can’t help themselves...
That was from Little Dick Gebhardt, in his tax plan.
This is XiNN.
Read down, you'll see it, he taxed sosh security in this bill.
https://en.wikipedia.org/wiki/Omnibus_Budget_Reconciliation_Act_of_1993
Thanks, I learned a new word.
Where is the BARF alert?
It is called supply side economics. It worked for President Reagan and will work every time it is tried.
Boy reagan was bamboozled by amnesty and now social security taxes. I don’t understand why he was so easily fooled.
The real question is: Did Actual President Trump tie his 49-state landslide or beat it?
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