Briefings for Britain, July 23, Catherine McBride
Inflation is not due to ‘tax cuts’, and Liz Truss is anyway mostly planning to limit increases. Reducing taxation cannot increase inflation, nor greatly reduce it. But it would have other benefits and should be undertaken urgently.
First, we should define ‘tax cut’ because some of Truss’s proposals are not really tax cuts, but simply not enacting Sunak’s planned tax increases, such as not increasing National Insurance and not increasing Corporation Tax. The only real tax cut I have heard her mention is removing the Green Levy of about £153 from the average energy bill which is a start but not as much as could or should be cut in that area. So, we are not talking about putting lottery winning amounts of money into the hands of consumers.
Click here to read the piece in full.