The Conservative Party

[Chippy_boy]

The problem is that the significant tax cuts only effect those with very high incomes who are relatively small in number and plenty of which will simply stash their windfall away.

The more modest tax cuts awarded to the lower income tax payers who are larger in number and far more likely to spend any surplus will be more than eaten up by the increased bills everyone is facing..

Kwarteng's policy cannot therefore stimulate the economy.

I'm tempted to agree with that. As I said in a previous post, I would rather they had targeted the lowest paid and those on income support.

However I am not so stupid as to think the the 45% to 40% cut was to rewards their chums, as some (all) of the bitter lefties seem to think. (Many "chums" are so loaded as to not notice anyway).

Not being part of government, I cannot say what the intention was, but I imagine it is to make the UK a more appealing place for inwards investment. Company directors are more likely to want to be based where tax rates are lower. So I think it's more to do with that (ditto the corporation tax change) than imagining all the money will naturally be spent at Waitrose.

There's also the issue that very rich people are more likely to just stump up and pay their 40%, rather than arrange their finances in complex ways in order to avoid paying it at all... which is what happens when rates go too high.

 

[Alan Harper's Tash]

 

[robbieh]

So the sceptics can ignore it having been a huge success then. Well how convenient.

Not denying it was a success, but it was a different world, and a different capitalism then.

 

[Gareth Barry Conlon]

There's also the issue that very rich people are more likely to just stump up and pay their 40%, rather than arrange their finances in complex ways in order to avoid paying it at all... which is what happens when rates go too high.

This is a truly pathetic piece of reasoning that right wingers like to wheel out. The idea that cutting taxes means the mega rich will be less liklely to engage in tax avoidance/evasion is just insulting to everyone else.

 

[Chippy_boy]

This is a truly pathetic piece of reasoning that right wingers like to wheel out. The idea that cutting taxes means the mega rich will be less liklely to engage in tax avoidance/evasion is just insulting to everyone else.

Insulting to those too lazy to look up the historical evidence, clearly.

And I am not talking about the "brain drain" the country experienced under Labour when masses of people fucked off rather than pay the ludicrous tax rates. The cut from 50p to 45p didn't reduce the overall tax take. In fact in raw figures, it went up by about £8bn (though this was largely (circa +£6bn) because people waited to get paid the later tax year at the lower rate.) But even accounting for that, the actual tax revenue did not actually fall, so clearly more people paid it.

 

[carlosthejackal]

Of course it is , financial markets predicting interest rates at 6% by March next year .

 

[Chippy_boy]

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Of course it is , financial markets predicting interest rates at 6% by March next year .

I don't claim to know more than experts, but I would bet my mortgage that interest rates will be nowhere near 6% by then.

But incidentally they were saying well before any hint of Friday's tax cut that rates would go to 6% or 7%,

 

[Scottyboi]

The party that always looks after the economy........ fucking shambles.

 

[Scottyboi]

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Of course it is , financial markets predicting interest rates at 6% by March next year .

State of the headline about Meghan too, really have to be a sad **** to fall for anything the mail pushes.

 

[Mike D]

Putting aside that a 2% drop is hardly "tanked", in fact it's not more than a normal daily swing as happens many, many times a year, I don't know more than experts, but I do know that there's historical examples of tax cuts turning economies around, as per Cowperthwaite's transforms of Hong Kong; Reagan's in the US.

Hardly tanked but
Not only was Friday the third-worst day for sterling since Black Monday in 1992, it was the 41st worst day in the 47,000 trading days since 1862.

Why you are comparing Reagan's US? Interest rates were 19% in the US and their economy was nothing like the UK is right now. There is no north sea oil to plunder or public assets to flog off. So you're comparison is irrelevant.