‘A budget for the 1%’: Government accused of huge tax cut for the super-wealthy | Mini budget 2022

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The government is accused of introducing a “simply staggering, huge tax cut for wealthier households” that will leave “the super-wealthy laughing all the way to the actual bank”, while potentially plunging hundreds of thousands of already struggling families deeper into poverty.

On Friday, Quasi Quartengthe chancellor, announced a series of tax breaks and other measures that economists and campaigners argue will greatly benefit the super-rich at the expense of hard-working people.

personal tax

The measures include:

  • Scrapping the extra 45p rate of tax on earnings over £150,000.

  • Putting a ceiling on the banks’ bonuses.

  • Scrapping the planned increase in corporation tax to 25 per cent.

  • Doubling the stamp duty “holiday” on property purchases to £250,000.

  • Allow the overseas wealthy to shop duty-free anywhere in the UK – not just at airports.

  • Repeal of the planned increase in national insurance contributions.

  • Tightening benefit rules to make it harder for part-time workers on Universal Credit.

The combined package of measures announced in the mini-budget means that a person currently earning £1m pounds, will gain £55,220 a year, while someone earning £20,000 will be just £157 better off, according to calculations by Resolution Foundation.

Torsten Bell, the chief executive of the think tank, said the policies “amount to a simply staggering, huge tax cut for wealthier households”.

Bell described the mini-budget as socially divisive and said almost 45% of the £45bn tax cuts The £ would “go to the richest 5% alone, who will be £8,560 better off”.

“In contrast, just 12% of the gain will go to the poorest half of households, who will be £230 better off on average next year.”

There are 3,519 bankers working in the UK earning more than €1m. per year (£880,000) according to the European Banking Authority (EBA). This is more than seven times as many as those in Germany, which has the second highest number of €1 million. per year bankers. The EBA figures show that 27 UK bankers earned more than €10m. in 2019 (the most recent year available).

Nicola Sturgeon, Scotland’s first minister, said: “The super-rich are laughing all the way to the actual bank. While increasing numbers of the rest are dependent on food banks – all thanks to the incompetence and recklessness of this failed UK government.”

The super-rich are laughing all the way to the actual bank (although I suspect many of them will also be appalled by the moral bankruptcy of the Tories), while increasing numbers of the rest rely on food banks – all thanks to the incompetence and recklessness of this. failed British government

— Nicola Sturgeon (@NicolaSturgeon) 23 September 2022

Paul Johnson, the director of Department of Fiscal Studies think tank, said the abolition of the 45p tax rate on incomes above £150,000 was “a surprise” that “roughly helps the top 1%.”

Together, Johnson said the measures constituted “the largest tax-cutting event since 1972”.

Alison Garnham, chief executive of the Child Poverty Action Group, described the budget as “a statement for the 1%” and said it was “more bankers’ bonuses than helping hungry children”.

“Today was an important opportunity to provide reassurance and support to those who need it most,” she said. “But instead the government risks a collision with reality and the 4 million children currently living in poverty in the UK will be forced to pay the price.”

Frances O’Grady, the general secretary of the TUC, said: “The government made it easier for City bankers to help themselves – making it harder for workers to win better pay and better conditions”.

Luke Hildyard, the chief executive of the High Pay Centre, a think tank that focuses on excessive pay, said: “By scrapping the bank bonus cap and cutting taxes on the richest 1% of the population, the government is doubling down on a failed economic strategy.

“The richest households in the UK already bring in more than the richest in most European countries.”

He said that instead of “bending over backwards for people who are already extremely well off”, the government should concentrate on “rebalancing income and wealth in favor of low and middle income earners”.

James Perry, a multi-millionaire and founding member of Patriotic Millionaires, a campaign group calling for higher taxes on the very wealthy, described Kwarteng’s mini-budget as “an abdication of responsibility for sound financial management”.

Perry, who made a fortune from a frozen meals company, said that instead of scrapping the high tax rate, Kwarteng should have introduced more taxes on the wealthy.

“We need to deal with the phenomenon of extreme wealth, a large pool of capital held by very few. Policies such as scrapping the bank bonus cap and the highest income tax will do the opposite.

“When 70% of the public say it’s time to raise taxes on extreme wealth to invest in our country – and millionaire investors like me agree – why wouldn’t the government do the right and obvious thing and get on with it?”

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