The Conservative Party

[Brightwell Bros.]

Larry Summers Warns Pound May Tumble Past $1 on ‘Naive’ UK Policies

Former Treasury Secretary Lawrence Summers blasted the economic policies being adopted by newly installed UK Prime Minister Liz Truss, saying they’re creating the circumstances for the pound to sink past parity with the US dollar.

www.bloomberg.com

 

[BobKowalski]

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

Band	Taxable income	Tax rate
Personal Allowance	Up to £12,570	0%
Basic rate	£12,571 to £50,270	20%
Higher rate	£50,271 to £150,000	40%
Additional rate	over £150,000	45%

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.

 

[grant1977]

Remember that scene in the Sopranos where they got control of the restaurant, borrowed to the hilt on its account, took the money , left it bankrupt & then burned it to the ground ?...........

Great analogy

 

[hampshireblue]

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

Band	Taxable income	Tax rate
Personal Allowance	Up to £12,570	0%
Basic rate	£12,571 to £50,270	20%
Higher rate	£50,271 to £150,000	40%
Additional rate	over £150,000	45%

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.

 

[kaz7]

The food banks should be state funded then they might get off their arses and help the lower end of their people , it is a disgrace that food banks have to exist at all

 

[BobKowalski]

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.‘

 

[Bodicoteblue]

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.

 

[Gabriel]

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.

 

[Alan Harper's Tash]

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.

Once the pound is worthless, they can pay us whatever they want.

 

[bluethrunthru]

Lol