Tellas has been ridiculed by Bayeng's "strongest" tax reduction plan for 50 years.

Jimu Journalist Hu Li

British Prime Minister Trasse announced the new fiscal policy, known as the "strongest" tax reduction plan in 50 years, but was accused of only making the richest group of people richer. According to the "Financial Times" report, Tellas plans to "radically" changing British economic policies and is undergoing huge gambling. The country's opposition party Labor said that these plans were "desperate gambling" of government with lower growth, investment and productivity.

The radical tax reduction plan was ridiculed by Bai Deng

The new British Treasury Minister Kavan released historic tax cuts on Friday, known as the "strongest" tax reduction plan in 50 years. The Tras government has also significantly increased the economic agenda of the financial market, but further worsen the situation of the pound and government bonds in the country.

Kwateng (Picture Source: Reuters)

In his speech to the House of Lower House, Kwate said: "We promise to give priority to the development of the economy, and we promise to adopt a new method for the new era." He emphasized: "We believe that high tax revenue has reduced work enthusiasm and hinders investment and enterprise development. "

British Prime Minister Tellas signed a plan to reduce national insurance. This policy will not help wealthy people, reverse the increase in corporate taxes in the plan, and cancel the upper limit of banker bonuses. In addition, Tras has to significantly reduce the printed duty of buying a house.

The Bank of England announced on September 22 that the 50 basis points raised their interest rates, raising the benchmark interest rate to 2.25%to cope with rising inflation expectations. This is the seventh rate hike since December last year. So far, the British benchmark interest rate has risen to the highest position since the 2008 international financial crisis. The Bank of England raised its interest rates 50 basis points to 1.75%in early August, which was its largest interest rate hike since 1995.

Britain will also speed up measures to cancel the upper limit of banker bonuses before taking a package of "ambitious relaxation control" in the later this year, thereby increasing the competitiveness of London Financial City as a global financial center. The operation of this series seems to be very large, but in fact, it does not take into account the interests of everyone.

These economic policies of Tras have attracted the mockery of President Biden. Biden wrote on Tuesday: "I'm tired of trickling economics. It has never worked." It is reported that the trick of economics refers to the special of the poor class, disadvantaged groups or poor areas in the process of economic development. Preferential treatment, but to benefit the poor class or region through consumption, employment and other aspects of the group or region that are preferred, driving its development and wealth, or that the government's financial allowance can flow into small enterprises and consumers by large enterprises. So as to better promote economic growth.

When a Turs spokesman was asked if Tras was pursuing "trickle" economics, he said he had not discussed economic theory with Tras. "What we know is that people who know higher income usually pay more taxes, so when you reduce taxes, it will usually bring inadequate benefits, because these people must pay first to pay More taxes. "

British exchange rate innovation low

Investors sold short -term British government bonds at the fastest speed. More than five years of borrowing costs have appeared in the largest single -day increase since 1991, and the pound fell more than 3%against the US dollar, reaching the level 37 years ago.

Bank of America Citi warned that the pound may be parity with the US dollar. Analyst Vasilios Gionakis stated in a research report that some things must be paid and will eventually reduce the British exchange rate.

"Desperate Gambling" that is not optimistic

According to British and American analysis, the mini budget released by Tras aims to get rid of the inflation period where the economy has soared and the 15 -year wage growth is stagnant.

Data chart (picture source: Reuters)

Kwo Teng said that in the next six months, the measures for subsidized energy bills will cost £ 60 billion (about RMB 464.6 billion). By 2026 or 2027, a total of 45 billion pounds will be consumed. These costs will be recovered by 1 percentage point of annual economic growth within five years. This is a feat that most economists think.

Overall, in the next six months, it will require an additional 72 billion pounds of government loans to implement these plans. A tax supervisor said that in the 25 years of analyzing the budget, this must be the most eye -catching, most risky and unparalleled mini budget. Tellas and her new government are in a huge gambling.

The Opposition Labor Party said these plans were "desperate gambling" with lower growth, investment and productivity.

The Labor Minister of Finance, Rachel Riers, said that the only thing in the UK will rise in the future will be inflation, interest rates and banker bonuses.

"Wish to become an unpopular Prime Minister"

Tellas' policy has caused a lot of controversy. Former British Financial Ministers, Sonak, once said that the implementation of tax cutting policy as soon as possible will bring catastrophic consequences to the British economy.

On September 20, local time, British Prime Minister Trasse said that his tax policy was expected to cause controversy and was ready to become an unpopular prime minister.

Tellas said during the UN General Assembly in New York that Western countries must increase economic stimulus, and she is willing to become an unpopular prime minister for this. In addition, she also acknowledged that her tax policy would benefit the wealthy group "incomparable".

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