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by mytailorisrich
1341 days ago
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No need for snide comments, especially when you're actually incorrect. Hunt already said that there will be huge spending cuts. What we're waiting for are the details of where these will fall, not if they will happen. The increase of the corporation will hurt the economy further and remove a competitive advantage (new rate will be same as Germany's...). Again, this is not my opinion but what the reports from economists and analysists say. This is a classic austerity approach to reduce debt. The conflict within the party is between that and reducing debt relatively to GDP (but perhaps not in absolute terms) by going for growth (making the cake bigger) but as we've seen that latter strategy is problematic because the markets do not really want to here about even further debt. |
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The rise in corporation tax for MNCs won't hurt competitiveness. The US had a 35% rate with no issues. We can raise ours to 25% with no issues. The only reason we reduced our rate to the level we did was because of tax havens in the EU, we have a global corporate tax deal which the EU will comply with (saying vaguely that you are right because "economists and analysists" say so is weak).
The issue with "going for growth" was that it wouldn't have boosted growth. The spending cuts were only required because of the tax cuts, the tax cuts aren't happening. When he was Chancellor, Sunak was cutting spending and this will likely continue (it has to, spending is far too high, the NHS became massively bloated during Covid). Reduction of debt will be gradual, the strategy is not austerity (as has been repeated ad nauseum, this happened after 2018 as well...some people just never stopped saying austerity was happening even when spending was rising significantly).