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Liz Truss urges world leaders to follow UK with trickle down economics

theguardian.com

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Re: Liz Truss urges world leaders to follow UK with trickle down economics

#11

Post by poorlyknit »

g42gregory wrote: post #6
isaacfrond wrote: post #2

Sigh. Trickle-down doesn't work. Lowering taxes on the wealthy helps the wealthy. It does not help the economy. Consumer spending is not increased, so the lost tax income by lowering taxes is not earned back through a larger economy to tax. The predictable result is more income inequality, which already is higher than it ever has been since the second world war.

I don't think wealthy are paying much taxes, percentage-wise (significant in dollar value though). There are simply too many tax minimization instruments that they have at their disposal. It's the middle class that is carrying the brunt of taxation. So when they say "tax the rich", what they really mean is "tax the middle class and small business owners". Eventually, you would run out of "other people's money" and yo…

I was under the impressions that the "tax the rich" mentality actually aims to close these loopholes for the super-rich. The idea is (I think) that increasing taxes on the literal top 1% or 0.1% just a little is much more effective than increasing them across the board.

Re: Liz Truss urges world leaders to follow UK with trickle down economics

#12

Post by gloryjulio »

g42gregory wrote: post #6
isaacfrond wrote: post #2

Sigh. Trickle-down doesn't work. Lowering taxes on the wealthy helps the wealthy. It does not help the economy. Consumer spending is not increased, so the lost tax income by lowering taxes is not earned back through a larger economy to tax. The predictable result is more income inequality, which already is higher than it ever has been since the second world war.

I don't think wealthy are paying much taxes, percentage-wise (significant in dollar value though). There are simply too many tax minimization instruments that they have at their disposal. It's the middle class that is carrying the brunt of taxation. So when they say "tax the rich", what they really mean is "tax the middle class and small business owners". Eventually, you would run out of "other people's money" and yo…

That's exactly how Canada is like. Monopolies dominate the industries and middle class are dying

Re: Liz Truss urges world leaders to follow UK with trickle down economics

#14

Post by severino »

She says UK has to lower taxes to be competitive yet at the same time asks the world to do the same -lower taxes-, so at some point they won't be competitive anymore as we'd have low taxes everywhere, so I guess she'd again say they have to lower taxes and the world should follow afterwards, until no one can lower taxes because there are no taxes. Maybe that's the point.

Re: Liz Truss urges world leaders to follow UK with trickle down economics

#18

Post by Ekaros »

Has there really been lack of capital for investments in recent years? Shouldn't all of the western economies be in excellent shape with all possible investments avenues done now? As isn't entire point of trickle down increase availability of capital?

Re: Liz Truss urges world leaders to follow UK with trickle down economics

#20

Post by hunglee2 »

UK has no place to lecture anyone else on economic management.

The country has one of the lowest growth rates in Europe, has crashed exports to its biggest market, maintained imports by simply waiving customs checks opening up the domestic market for all kinds of fraud, has signed one-sided free trade deals for the newspaper headlines, introducing competition to those domestic producers for no equivalent gain for exporters, whilst failing to sign a symbolically important free trade deal with US - despite the special relationship - and also deciding to escalate hostilities with China, the world second largest economy, as a 'pick me' demonstration of loyalty to the aforementioned US.

No need to mention pandemic mismanagement which managed to put billions onto the national debt, crashing multiple business sectors with its confused lockdown vs let it rip oscillations and still end up with one of the highest infection rates / case fatality rates from Covid-19. Latest figures from IFS additionally suggest up to 500,000 UK workers are 'economically inactive' due to long covid, a massive loss of workers, increasing the cost of employment for those employers who do need to hire.

The way to treat UK prognostications on economic matters is 'precisely the opposite'

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