The Conservative Party

Yeah the benefit to me is in the NI change (circa £1k a year better off). I'm not in the additional rate bracket so no gravy there for me.

The thing is they claim that they are reducing tax to help grow the economy but surely if its that simple you can adjust any band and generate the same effect. The obvious question for them is what is it about people earning over £150k a year that made them want to target them, to reduce their tax, to help the economy. Why not tinker with the basic rate?

Income Tax rates and bands
BandTaxable incomeTax rate
Personal AllowanceUp to £12,5700%
Basic rate£12,571 to £50,27020%
Higher rate£50,271 to £150,00040%
Additional rateover £150,00045%

Pumping money into the economy through tax breaks means you should start lower down the scale, even increasing benefits. The argument will be that ‘these people will spend it on iPhones’, and I’m like, yeah, that’s the fucking point. Consumer spending drives growth, so the more iPhones the better.
 
Yeah the benefit to me is in the NI change (circa £1k a year better off). I'm not in the additional rate bracket so no gravy there for me.

The thing is they claim that they are reducing tax to help grow the economy but surely if its that simple you can adjust any band and generate the same effect. The obvious question for them is what is it about people earning over £150k a year that made them want to target them, to reduce their tax, to help the economy. Why not tinker with the basic rate?

Income Tax rates and bands
BandTaxable incomeTax rate
Personal AllowanceUp to £12,5700%
Basic rate£12,571 to £50,27020%
Higher rate£50,271 to £150,00040%
Additional rateover £150,00045%
Spot on. But the first thing Sunak did as Chancellor was to freeze the bands that had previously been index linked till 2026. So the fiscal drag affects all who pay tax and brings many into higher bands. AS a comparison, reducing tax from 20% to 19% for someone on £25k is the princely giveaway of £125.

They are also claiming that the reduction in fuel bills will reduce CPI. That may be the case but CPI doesn't include housing costs like mortgages that are included in RPI so even the inflation figure that they work on will be skewed.
 
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But remember all you naysayers….we were promised high skilled, high paid jobs in global Britain.
You get your high paid jobs, then you get to enjoy the benefits of all those luvverly tax-cuts.
Hooray.
 
Tory MP Julian Smith breaks ranks

’In a statement with many positive enterprise measures this huge tax cut for the very rich at a time of national crisis & real fear & anxiety amongst low income workers & citizens is wrong.‘
MP for the safe Conservative seat of Skipton and Ripon with a 23,659 majority; he’s now been openly critical of May, Johnson, and Truss.
 
Policies that have been shown to be utterly corrosive wherever they have been implemented.

The evidence of Kwarteng's budgetary incompetence is actually already out there in empirical form and has been since the late 90's when John Gray published the first edition of False Dawn: The Delusions of Global Capitalism. Gray is, of course, noted for having predicted the 2008 crash.

In that book, Gray looks in detail at four countries that have experimented with neoliberal economic policies of the kind favoured by Truss and Kwarteng: the USA, UK, New Zealand and Mexico. In each instance, the imposition of these policies demonstrably increased economic inequality (thus confirming the well-known research of Richard Wilkinson and Kate Pickett), and reduced social mobility and cohesion.

For example, according to the Rowntree Report on Income and Wealth, inequality in the UK increased dramatically and quickly between 1977 and 1990, a period during which the poorest income groups ceased to benefit from economic growth, and there was a threefold increase in the proportion of the population earning less than half of the national income. However, by 1984-85, the richest 20% of earners enjoyed a 43% after tax share of that income, the highest since the end of the World War 2. Meanwhile, in New Zealand a previously non-existent underclass was created following the introduction of neoliberal policies (by a Labour government!), while in Mexico the size of the middle classes was substantially reduced, and the very poorest were driven into a state of even more abject poverty.

This time around I will leave it there. But I am quite happy, if need be, to author a much longer post citing multiple sources that all converge on the same conclusion, namely, that Kwarteng's brand of economics is already known to be an epic fail.


Just Tories being Tories
 
Pure tory scum.

They're just going to ravage this country and all of us in it (apart from their rich pals) and lump us with billions of debt cos they know they won't win the next election and/or they're just puppets for their rich donors. Covid money went to their mates. No windfall tax on excess energy company profits (they had to take care of their mates again), now this (and plenty more in between). It's a scandal and an embarrassment the people of this country are standing for it.
 

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