"Lower taxes boost the economy, letting people spend where they see fit. You can’t tax your way to higher growth, and you can’t spend your way out of an inflation crisis."
The big taxpayer news this week was a series of support measures announced by the chancellor in an effort to tackle the cost of living crisis. It's fair to say at the TPA we were less than impressed by Rishi's plans.
His energy grant and one-off payment for some households amount to little more than the government taking with one hand and giving with the other. Taxes are the single biggest bill families face and these huge handouts will see politicians hoovering up the incomes of struggling taxpayers.
There is this to note also:
In the past 42 years, we in the US have seen round after round of tax cuts, mostly for the wealthiest. Each time, deficits have grown, and the tax cuts have not stimulated anything.
ReplyDeleteRishi is fiddling while Rome Burns. They have borrowed heavily over the last three years to pay for Covid, we've had decade of money printing, with inflation only kept at bay by cheap imported goods from China and cheap labour from Eastern Europe. Losing just the cheap Chinese imports is enough to stoke inflation like they are having elsewhere in the world. The UK got the double whammy because workers in the UK resented being undercut by the rest of the world to the point they couldn't house a family despite both adults working..
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