A US economics expert has criticised the UK tax level, saying problems began to creep up under the Labour Government led by Gordon Brown.
Former Donald Trump campaign adviser Dr Arthur Laffer joined Jacob Rees-Mogg on GB News to lament “woke” policies which he claims has stifled the British economy.
He says that “all hell broke loose” under the premiership of Gordon Brown as a result of the tax rate.
“Margaret Thatcher dropped the highest rate of tax, if I remember correctly”, he said.
A US economics expert has criticised the UK tax level
GB NEWS / PARLIAMENT
“The highest recorded tax rate in Britain at that time was something like 98 per cent before she came in.
“I think she reduced it to about 40 per cent. And then of course, Gordon Brown popped it from 40 per cent to 50 per cent and all hell broke loose and ruined the economy.
“It dropped back down to 45 per cent, but it should be much lower.”
Rishi Sunak has suggested tax cuts are on the way, arguing the economy has “turned a corner”.
He said trimming taxes was “the direction of travel from this government” but refused to say if the pensions triple lock would be in the next Conservative Party manifesto.
Sunak and Chancellor Jeremy Hunt have faced increasing pressure from the right of the Tory Party to cut taxes ahead of the general election, which is expected to take place next year.
The US economist suggested tax measures first seen imposed by ex-president Ronald Reagan could “work wonderfully” in Britain.
Dr Laffer explained: “Your policies are trying to be much more woke and much more socially oriented.
“I worked with Trump. Those bills, the Tax Cuts and Job Act worked perfectly. It paid for itself quickly. It in fact it led to an increase in revenues.”
Dr Laffer continued: “It led to a reduction in poverty of all the impoverished groups, the poor, the minorities, the disenfranchised. It led to exceptional growth as well.
“That bill worked wonderfully under Trump just the way it did under Reagan. I mean the first bill we had in 1981, and then we had the 1986 Tax Act, which you know under Reagan we cut the highest tax rate down from 70% to 28%. We cut the corporate rate from 46% to 34%.
‘I mean, we really did amazing cuts.”
