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U.K.'s economic turmoil a warning to Republicans about what NOT to do: Prime Minister Liz Truss caves in to the left on a proposed tax cut
American Thinker ^ | 10/03/2022 | Monica Showalter

Posted on 10/03/2022 8:25:23 PM PDT by SeekAndFind

Liz Truss, the U.K.'s new prime minister, billed herself to the public as that, but the mess she's made of the British economy, which includes a cave-in on a proposed tax cut, is pretty much the opposite of What Thatcher Would Do.

According to Fox News:

The U.K. is canceling plans to impose a major tax cut for the nation's top tax bracket following widespread frustration and market chaos, U.K. Prime Minister Liz Truss announced Monday.

Truss' plan had called for eliminating the U.K.'s highest tax bracket, resulting in major cut for citizens making more than $168,000 annually. Truss and her government stood against criticism of the plan for weeks, arguing that it would create economic growth amid fears of a recession.

She nevertheless backed down on the plan with a Monday tweet.

"We get it and we have listened," she wrote. "The abolition of the 45pc rate had become a distraction from our mission to get Britain moving. Our focus now is on building a high growth economy that funds world-class public services, boosts wages, and creates opportunities across the country."

 
Get what? What on earth is she talking about? Can you imagine Lady Thatcher telling the rabid leftists as she caved to their demands something like: "We get it"?
 
Eeew.
 
Aside from that, the whole thing pretty much stinks any way you look at it. A planned elimination of the 45% tax bracket for people making the U.S. equivalent of $168,000 a year or more is hardly a tax cut for "the rich," it's a badly needed tax cut on the private sector to ensure the creation of small businesses and the jobs that go with it as the COVID-hangover recession approaches. Truss wasn't up to fighting for that as the left hollered about it.
 

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


TOPICS: Business/Economy; Foreign Affairs; News/Current Events; United Kingdom
KEYWORDS: bloggers; borisjohnson; economy; kwasikwarteng; liberalpropaganda; liztruss; pennymordaunt; redtories; rishisunak; rubbish; taxcuts; uk; unitedkingdom
A good tax break plan ought to affect the entire population, not just the upper middle class segment. Throwing it out there and then letting the left yell about tax cuts for the rich is Doing It Wrong. What horrible planning these people have initiated.

It gets worse. The left also is yelling about the Truss budget's plan to increase borrowing. Truss, it seems, wants to spend more government money for "infrastructure" and will need to borrow to do it. That's pure Joe Biden, and with the U.K. battling scary high inflation already, it's time to cut the size of government immediately and throw some ice on the overheated government money-printing presses.

Truss, in other words, is willing to throw out the tax cut, but not willing to throw out the government spending plans. What's wrong with this picture?

1 posted on 10/03/2022 8:25:23 PM PDT by SeekAndFind
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To: SeekAndFind

Truss needs to cut spending (along with taxes) — that’s what really counts.

The same goes for the US.


2 posted on 10/03/2022 8:35:24 PM PDT by Alvin Diogenes
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To: Alvin Diogenes

A sequester was good a while ago. Tie it to the debt ceiling. Cut half from defense and half from other programs. So we can make a bipartisan deal. It will cool the economy as well. The Fed can’t do all the dirty work if Brandon is spending like a drunk man in a bar.


3 posted on 10/03/2022 8:37:19 PM PDT by MinorityRepublican
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To: SeekAndFind

Supporting tax cuts without spending cuts is a sure sign that someone was exposed to lead as a child. Truss Rod and her African finance minister need to get tossed.


4 posted on 10/03/2022 8:40:01 PM PDT by Clemenza
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To: MinorityRepublican

We can try to blame the Democrats, but the Republicans have been almost as bad on spending when they’ve been in charge. (For what it’s worth, the Republicans do say the right things when they’re not in power.)

I hope a MAGA red wave will change that; we need to have enough votes in Congress that RINOs can’t undermine us.


5 posted on 10/03/2022 8:42:40 PM PDT by Alvin Diogenes
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To: SeekAndFind
This has nothing to do with the left. It was the market, in the form of bond vigilantes who put the brakes on. Cutting taxes without cutting government adds to the debt[hello GOP]. Thus, destroying the value of bonds and defined pension schemes, sterling, etc.
6 posted on 10/03/2022 8:59:13 PM PDT by Theoria
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To: SeekAndFind

The real question is going to be:

Will the UK economy sink faster or slower than the Titanic?


7 posted on 10/03/2022 10:06:54 PM PDT by cranked
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To: SeekAndFind

Stupid thing is, the Tories have had ten years of historically low interest rates to borrow for infrastructure spending and the return on investment would’ve made it worthwhile.

They chose austerity instead. Now even if you believe in trickle-down and do think national finances are the same as the household finances, it’s inconsistent.

A few years ago the Tories were pointing and laughing at old Tankie Corbyn for pitching a National Investment Bank where people bid for a LOAN to get their business or infrastructure asset funded, borrowing to invest, higher taxes, and taxing the rich more than the poor.

Now the Tories are promising tax cuts for some, MASSIVE tax cuts for the top 10%, MASSIVE state borrowing (and at much higher interest rates), no clear plan on what to invest in... and the pound’s completely all over the place.

It’s not just crazy from a Tory perspective, it’s an order of magnitude more demented than what Corbyn and McDonnell - two unreconstructed tankies, only one of which has even the slightest grasp of economics - were pitching in 2016.

It comes to something when I’m thinking this mini budget would’ve looked less bonkers if Liz Truss had made John McDonnell the Chancellor of the Exchequer and said “Use your 2016 elevator pitch”.


8 posted on 10/04/2022 12:29:49 AM PDT by MalPearce ("You see, but you do not observe". https://www.thefabulous.co/s/2uHEJdj)
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To: MalPearce

All by design to get the Limeys back onto the EU plantation. The EU is the Hotel California. “You can checkout anytime you like, but you can never leave”


9 posted on 10/04/2022 1:19:25 AM PDT by Long Jon No Silver (Rrily)
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To: SeekAndFind
"We get it and we have listened," she wrote. "The abolition of the 45pc rate had become a distraction from our mission to get Britain moving. Our focus now is on building a high growth economy that funds world-class public services, boosts wages, and creates opportunities across the country."

No, don't think you don't get it. Building a high growth economy is accomplished by abolition of the 45pc rate and government spending cuts. Bank of England had to step in to preserve UK national balance sheet because your proposal failed to include the latter, to which markets negatively reacted. Wake up, Liz.

10 posted on 10/04/2022 1:37:48 AM PDT by Ahithophel (Communication is an art form susceptible to sudden technical failure)
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To: Ahithophel

No, don’t think you get it. (Ed.)


11 posted on 10/04/2022 1:40:30 AM PDT by Ahithophel (Communication is an art form susceptible to sudden technical failure)
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To: Clemenza

Impossible to cut borrowing now. The price of energy is forcing the British government to subsidise it so that the worse of don’t freeze to death. If they cut spending now there would be a violent revolution. As Truss said the UK GDP to debt ratio is pretty good for a g7 country and borrowing more until energy prices come down and growth is achieved through tax cuts seems like a good idea.


12 posted on 10/04/2022 12:12:09 PM PDT by sinsofsolarempirefan
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To: sinsofsolarempirefan

All incredibly stupid moves - if you are going to spend for “security” you can’t cut taxes. Truss Rod and her African deserves to get punished for such fiscal idiocy.


13 posted on 10/05/2022 3:33:59 PM PDT by Clemenza
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To: Clemenza

You need to have the ability to borrow during a crisis, we have a crisis. Therefore we need to increase borrowing until the crisis goes, but in the meantime, we also need to stimulate growth by cutting taxes on the basis that tax cuts will pay for themselves by encouraging growth. Letting old people freeze to death by refusing to borrow more to subsidise energy crisis will lead to an electoral revolt and a massive Labour majority at the next election in 2024. Then you will get socialism, along with open borders and more wokeness.


14 posted on 10/06/2022 8:50:53 AM PDT by sinsofsolarempirefan
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To: SeekAndFind
Update....

Gasps in Commons as Liz Truss rules out public spending cuts

Note to the UK's citizenry...

Wake up. You have a Deep State, too. And yours is as great a threat to you as ours is to us. But we have a Trump. You lot had better find one of your own. Fast.

15 posted on 10/12/2022 9:49:55 AM PDT by mewzilla (We need to repeal RCV wherever it's in use and go back to dumb voting machines.)
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