Wealthy people ready to escape tax raid as economy grows – fr

Wealthy people ready to escape tax raid as economy grows – fr

Rishi Sunak suggested wealthy families would be spared from a U.S.-style tax raid as he hailed the strength of Britain’s growing economic recovery.

In a speech on Tuesday, the chancellor said he was “cautiously optimistic” about a resumption of economic growth as a series of data indicated a strong rebound.

Mr Sunak said the measures he announced in the March budget should be enough to bring the struggling public finances back to a level playing field – suggesting he has given up on a tax hike on overheads – values ​​after speculating that the Treasury was planning a crackdown.

It came as data showed household savings continued to rise and dozens of entrepreneurs were starting their own businesses before the economy reopened again on May 17.

Speaking at Wall Street Journal’s At the CEO Council summit, Mr. Sunak said, “As we look forward to the reopening in the weeks and months to come, there are signs of cautious optimism and we can see it in the data. . the year.

“We are seeing a return of consumer confidence to pre-pandemic levels. CFOs are very positive. We know there is a huge amount of excess savings both in the household sector, approaching £ 140bn, and £ 100bn on corporate balance sheets.

“I think the signs are promising and the genesis of our policy a year ago was to help people protect their incomes, protect businesses, so that when we got to this point, we could indeed rebound strongly. ”

Mr Sunak added that Britain’s wealthiest families are already heavily taxed.

He said: “For example, the richest 1% of wage earners pay or account for almost 30% of all tax revenue as it is, so I think we’re starting with a very progressive tax system.

“We can get debt on a stable or declining basis overall with the measures we have already announced. “

In America, President Joe Biden wants to almost double the rate paid on capital gains for the richest.

A review by the Office for Tax Simplification concluded last year that billions of pounds could be raised through “better alignment” of capital gains tax and income tax.

The chancellor reportedly considered taking action earlier this year, but ultimately spared investors. Instead, he announced a corporate tax hike and froze certain tax thresholds to plug the black hole left in public finances by Covid.

Mr Sunak said his plan to freeze income tax thresholds was “a gradual way to raise funds,” but said he would not comment on future tax policy. Treasury sources added that the outlook remains too uncertain to rule out anything.


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