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UK scraps tax cut for wealthy that sparked market turmoil
NYPost ^ | 10/03/2022 | AP

Posted on 10/03/2022 6:34:33 AM PDT by ChicagoConservative27

LONDON — The British government has dropped plans to cut income tax for top earners, part of a package of unfunded cuts that sparked turmoil on financial markets and sent the pound to record lows.

Treasury chief Kwasi Kwarteng said Monday that he will not scrap the top 45% rate of income tax paid on earnings above 150,000 pounds ($167,000) a year.

“We get it, and we have listened,” he said in a statement.

The U-turn comes as more lawmakers from the governing Conservative Party turn on government tax plans announced 10 days ago. It also comes hours after the Conservatives released advance extracts of a speech Kwarteng is due to give later Monday at the party’s annual conference, saying: “We must stay the course. I am confident our plan is the right one.”

Prime Minister Liz Truss defended the measures on Sunday, but said she could have “done a better job laying the ground” for the announcements.

(Excerpt) Read more at nypost.com ...


TOPICS: Business/Economy; Culture/Society; Foreign Affairs; News/Current Events; United Kingdom
KEYWORDS: cut; cuttaxukwealthy; eussr; fourthreich; ftse; kwarteng; kwasikwarteng; redtories; tax; uk; wealthy; youllregretit
Truss is no Thatcher
1 posted on 10/03/2022 6:34:33 AM PDT by ChicagoConservative27
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To: ChicagoConservative27

Seems the only choice in the U.K. is either full blown socialism and political correctness insanity or slow-motion socialism and political correctness. Is UKIP offering something on this?


2 posted on 10/03/2022 6:36:56 AM PDT by OttawaFreeper ("The Gardens was founded by men-sportsmen-who fought for their country" Conn Smythe, 1966 )
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To: ChicagoConservative27

Tax cuts make sense. Reduce government spending.


3 posted on 10/03/2022 6:38:31 AM PDT by ConservativeMind (Trump: Befuddling Democrats, Republicans, and the Media for the benefit of the US and all mankind.)
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To: ConservativeMind

“Tax cuts make sense. Reduce government spending.”

The problem in the UK is that their “Conservative” Party is dominated by a bunch of landed aristocrats who abhor any Trump style populism.

Being woke on social issues while proposing tax cuts for the rich appeals to no one outside a tiny elite.


4 posted on 10/03/2022 6:48:29 AM PDT by Renfrew
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To: Renfrew

And yet they manage to win elections.


5 posted on 10/03/2022 6:52:10 AM PDT by NorseViking
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To: OttawaFreeper
> Seems the only choice in the U.K. is either full blown socialism and political correctness insanity or slow-motion socialism and political correctness.

This has been the globalist elite's post WWII plan for the West made possible by the Bretton-Woods System.

Those with real power control the monetary system to for their will upon the rest of the world.

The current ESG insanity and the new ISO MCC for firearms related credit card purchases are recent examples of this.

6 posted on 10/03/2022 7:01:59 AM PDT by SecondAmendment (This just proves my latest theory ... LEFTISTS RUIN EVERYTHING !!!)
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To: ChicagoConservative27

The original tax cut for the wealthy was from 45% to 40%.

Mass hysteria, it seems, took over the financial markets after the tax cut was announced.

The international financial press triumphantly announced - with one voice - that the British Pound fell to a record low. They conveniently forgot to mention that the Euro also dropped to a near record low.

The international financial press also announced that interest on the British 10 year bond zoomed over 4%. The press forgot to mention that 4% was just 30 basis points (0.30%) higher than the US Treasury 10 year bond at 3.7%.


7 posted on 10/03/2022 7:21:43 AM PDT by zeestephen
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To: zeestephen
Bond vigilantes were upset that Truss wanted the tax cuts without cutting government spending. That's the same song and dance pimped by the gop. That's more debt.
8 posted on 10/03/2022 7:31:06 AM PDT by Theoria
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To: ChicagoConservative27

Somehow I don’t think Thatcher had a Treasury Chief named “Kwasi”.


9 posted on 10/03/2022 7:34:43 AM PDT by dfwgator (Endut! Hoch Hech!)
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To: Renfrew
The problem in the UK is that their “Conservative” Party is dominated by a bunch of landed aristocrats

Rich, yes. Aristocrats, certainly not.

10 posted on 10/03/2022 7:56:13 AM PDT by Winniesboy
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To: Renfrew

What are you talking about? The 19th century? The landed aristocracy have been utterly irrelevant politically for many, many years.


11 posted on 10/03/2022 8:08:32 AM PDT by sinsofsolarempirefan
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To: ChicagoConservative27

Maybe new incentives for investment in energy infrastructure would go over better?


12 posted on 10/03/2022 12:48:35 PM PDT by Paul R. (You know your pullets are dumb if they don't recognize a half Whopper as food!)
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