British Government announces biggest tax cut in 50 years

The new British government of ultra-conservative Liz Truss has made a statement. radical transformation in the economy United Kingdom, Biggest tax cut in 50 years. It is a phased plan over the next five years and is expected to reach it. 45,000 million (51,000 million Euros) For the 2026-2027 fiscal year. Economists warn that this huge bet, which is very risky and has no guarantee of success, will not work. unsustainable indebtedness from the country.

Tax reform will be accompanied by cuts in regulations. “This is a new approach for a new era of focus. to increase‘ said the finance minister, Kwasi Kwartengby offering measures that disproportionately favor the wealthiest, redistribution of wealth.

The budget, which Kwarteng announced in the House of Commons this Friday, tax about rent, including the highest income. “The base income tax rate will be reduced by 19% in April 2023, one year earlier (than expected)”, which is “tax deduction for more than 31 million people in just a few months” and “the top 45% of this tax will be removed.” According to Kwarteng, “this will simplify the tax system and make the UK more competitive“, so it will “stimulate growth and benefit the whole economy and the whole country.”

The minister announced that the tax rates were cut with immediate effect. buying a house In the UK and Northern Ireland (‘stamp duty’) it raised the price payable to 286,000 euros. For those who will buy a house for the first time, this threshold will increase from 340,000 Euros to 485 thousand Euros so far.

dangerous debt

The new budget marks a stratospheric increase in Britain’s debt. That debt rose from £161,000 million in April to 234,000 million in September, according to the Treasury review. The Bank of England had raised interest rates to the highest level in the last 14 years with 2.25% the previous day and warned that the UK was in recession.

Kwarteng also confirmed cancel increase Corporation tax Y limiting bonus for bankersending a rule that is currently 200% of the annual salary, thus inherited from the European Union. “We need international banks to create jobs here,” he said, “and we paid the taxes here in London, not Paris, Frankfurt or New York.” The increase in corporate tax was also cancelled.

The government also intends change your right strike from the workers. The new legislation will require unions to vote among their members on salary proposals offered by bosses, so they can only go on strike when negotiations break down. Other new standards social benefits will be reduced. not looking for a new job

Source: Informacion

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