She defended herself for taking 'difficult decisions'
Prime Minister Liz Truss has admitted that her proposed tax cuts will benefit the rich more than the poor, as she sets out her economic plans to help tackle the cost of living crisis.
Speaking to Sky News, Truss confirmed her plans to remove the cap on bankers’ bonuses, as well as her overall tax cutting agenda, defending her proposals because she is ‘prepared to take difficult decisions’.
She said: “I don’t accept this argument that cutting taxes is somehow unfair.
“I mean, what we know is that people on higher incomes generally pay more tax.
“So when you reduce taxes, there is often a disproportionate benefit because those people are paying more taxes in the first place.
“We should be setting our tax policy on the basis of what is going to make our country most successful, what is going to deliver that economy that benefits everyone in this country.”
Truss was also asked by BBC Political Editor Chris Mason whether she was happy to see bankers getting bigger bonuses and for the rich to get richer.
“What I want to see is a growing economy,” she said.
“If that means taking difficult decisions which are going to help Britain become more competitive, help Britain become more attractive, help more investment flow into our country, yes, I’m absolutely prepared to make those decisions.”
Liz Truss’ comments about tax cuts for the wealthy, offering more of the same ‘trickle down economics’ which has failed us for so long and led to widening inequality, were a stark contrast to U.S. President Joe Biden’s remarks yesterday.
The President tweeted last night: “I am sick and tired of trickle-down economics – it has never worked. We’re building an economy from the bottom up and middle out”, taking aim at the idea that cutting taxes for businesses and the wealthy will see benefits “trickle down” into the pockets of the least well-off.
Truss and Biden are expected to discuss the economy, the energy crisis and the Northern Ireland protocol in New York later today, where they are attending events as part of the UN general assembly.
Although President Biden’s tweet is intended towards a domestic U.S. audience, his comments nonetheless show the stark divide between the Democrat President and the right-wing free-market Tory.
Basit Mahmood is editor of Left Foot Forward