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UK reverses dropping "45% tax bracket"

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  1. #11

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    "The difference this makes really is trivial," said Paul Johnson, director of the IFS think tank.

    Getting rid of the rate would have cost the Treasury around £2bn out of the £45bn worth of tax cuts Mr Kwarteng announced in his so-called "mini-budget".

    "This was, if anything, possibly the smallest measure from a fiscal point of view, if not a political point of view, in the mini-budget," said Mr Johnson. "It is about 5% of the tax cuts."
    Politics not economics...

  2. #12

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    Quote Originally Posted by GentleGeorge:
    Politics not economics...
    But when you have a country facing significant inflation and the average person is suffering and the poor are really suffering then politics is important. Politics is not a meaningless abstract concept but impacts on people's lives and their feelings of wellbeing.

  3. #13

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    Quote Originally Posted by hullexile:
    But when you have a country facing significant inflation and the average person is suffering and the poor are really suffering then politics is important. Politics is not a meaningless abstract concept but impacts on people's lives and their feelings of wellbeing.
    Cakeism

  4. #14

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    Quote Originally Posted by GentleGeorge:
    Cakeism
    My comment or the tax cut?

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    They have yet to announce how to make spending cut, which could throw GBP into chaos again!

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  6. #16

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    Quote Originally Posted by hullexile:
    My comment or the tax cut?
    Saying that it's important to make people feel good by not confronting economic realities during an economic crisis caused by 15 years of people not being willing to make the economic changes required to make their lifestyle sustainable.

  7. #17

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    Quote Originally Posted by GentleGeorge:
    Saying that it's important to make people feel good by not confronting economic realities during an economic crisis caused by 15 years of people not being willing to make the economic changes required to make their lifestyle sustainable.
    Just invent what I said.

    I would disagree that tax cuts for the rich and without balancing spending cuts are confronting economic realities. Quite the opposite.

  8. #18

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    Quote Originally Posted by hullexile:
    I would disagree that tax cuts for the rich and without balancing spending cuts are confronting economic realities. Quite the opposite.
    Those tax cuts were a rounding error even if they didn't generate more growth or tax receipts.

    I know of several people in HK who had planned to move to Sing, and on this announcement last week were beginning to think that without the supertax maybe just bin Asia altogether and just head home. And they would have been paying a lot of additional tax to HMRC.

    I haven't spoken to any since the U turn but I'm fairly certain they will be sticking with Asian stability for the near future!

  9. #19

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    Quote Originally Posted by GentleGeorge:
    Those tax cuts were a rounding error even if they didn't generate more growth or tax receipts.

    I know of several people in HK who had planned to move to Sing, and on this announcement last week were beginning to think that without the supertax maybe just bin Asia altogether and just head home. And they would have been paying a lot of additional tax to HMRC.

    I haven't spoken to any since the U turn but I'm fairly certain they will be sticking with Asian stability for the near future!
    Right of course you did. Strange the markets didn't take that into account.
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  10. #20

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    Quote Originally Posted by hullexile:
    Right of course you did. Strange the markets didn't take that into account.
    So we should follow the bond vigilantes now when drafting our economic policy?!

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