U.K. scraps tax cut for wealthy that sparked market turmoil

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The British government on Monday dropped plans to cut income tax for top earners, part of a package of unfunded cuts unveiled only days ago that sparked turmoil on financial markets and sent the pound to record lows.

In a dramatic about-face, Treasury chief Kwasi Kwarteng abandoned plans to scrap the top 45% rate of income tax paid on earnings above 150,000 pounds a year.

The U-turn came after a growing number of Conservative lawmakers, including former ministers with broad influence, turned on the government's tax plans. Truss defended the measures Sunday but said she could have "done a better job laying the ground" for the announcements. The package proved unpopular, even among Conservatives. Reducing taxes for top earners and scrapping a cap on bankers' bonuses while millions face a cost-of-living crisis driven by soaring energy bills was widely seen as politically toxic.

 

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Can somebody inform PierrePoilievre that trickle down economics are disastrous? He gets his knowledge from crypto podcasts and won't listen to anything outside the cult.

😂

Cons never learn. They keep trying the same stupid tax cuts for the wealthy and it never works out.

For the 'Conservatives are prudent managers of the public purse' crowd. Well at least Truss didn't recommend the use of crypto as a hedge against inflation like Canada's con clown leader.

Trickle down does not and has never worked...

Tories can't wait to cut taxes for the rich. Too bad it's terrible for the economy.

Brilliant. First thing this new hard conservative PM does, and it's a disaster.

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