UK tax cut ‘for the rich’ has slammed: economists call it ‘risky gamble’, markets react negatively

That plan is now concrete and Liz Truss keeps her word. In addition to a general basic income tax cut, taxes will be reduced proportionally for those earning more than £ 150,000 (or nearly £ 170,000) per year. In concrete terms, UK citizens earning £ 20,000 a year should pay £ 167 less, for those earning £ 200,000 rising to more than £ 5,000, the BBC calculates. Landowners and businesses are also doing better. The government is also canceling its plans for a national health insurance and a corporation tax. The banker’s bonus cap will disappear. With the tax cuts, the British government wants to increase purchasing power and break the downward economic spiral. The UK economy has officially been in recession since last week. The other side of the coin is that the tax plan costs the government a lot of money. The government wants to borrow £ 234 billion (or € 262 billion), the BBC says, and those costs will rise in the coming years, according to economists.

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