Liz Truss urges world leaders to follow UK with trickle down economy | Liz Truss

Liz Truss will urge world leaders to join Britain in introducing far-reaching tax cuts, despite US President Joe Biden expressing disdain at “trickle down economics” ahead of their first bilateral talks in New York.

In a speech to the United Nations on Wednesday, the prime minister will argue that the free world must prioritize economic growth in order to deny authoritarian states like Russia the opportunity to manipulate the global economy.

However, her embrace of Reaganite economic policy puts her on a collision course with the Democratic president who tweeted yesterday that he was “sick and tired” of the approach, which he claimed had never worked.

In her latest break from Treasury orthodoxy, Truss pledged Tuesday to review all tax rates to help families and businesses struggling with the cost of living. The Prime Minister’s comments pave the way for a radical overhaul of the system, which could include a rethink of tax brackets and amid reports she plans to cut stamp duties as part of her mini-emergency budget for Friday.

In an interview at the top of the Empire State Building on Tuesday, she told the BBC: “We have to make tough decisions to get our economy right. We have to look at our tax rates. So corporate tax has to be competitive with other countries so that we can attract that investment.”

She had already indicated that further tax cuts, in addition to the changes expected on Friday, could be on the way. She told reporters on the plane to the US, “Lower taxes lead to economic growth, I don’t doubt it.”

The Times reported that Truss believes cutting stamp duties – which brings in about £12 billion a year for the Treasury – would help growth by encouraging more people to move.

Truss’s first talks with Biden are taking place amid tensions over post-Brexit trade settlements in Northern Ireland. Despite the UK’s attempts to separate the issues, the Biden administration has warned that a free trade agreement is unlikely until the dispute over the Northern Ireland protocol is resolved.

In a move likely to disappoint Brexiters, Truss downplayed expectations that a trade deal was imminent, saying: “There are currently no negotiations with the US and I don’t expect them to start in the short to medium term. .”

US National Security Adviser Jake Sullivan said Biden would use the meeting to “encourage the UK and the European Union to achieve a practical outcome that ensures there is no threat to the fundamental principles of the Good Friday Agreement”.

The two leaders also disagree on their approach to achieving growth, with Truss backing the “trickle down” economy during the Tory leadership contest, arguing that it was wrong to see all economic policy through the “lens of redistribution.” ‘ to watch.

Biden, meanwhile, tweeted: “I’m tired of the drip economy. It never worked. We are building an economy from the bottom up and out of the middle.”

Still, Truss is expected to advocate her economic case in her keynote address to the UN, telling other world leaders: “We want people to love the money they earn more because we believe freedom is more important than instruction. We are reforming our economy to help Britain move forward again.

“The free world needs this economic strength and resilience to pull back against authoritarian aggression and win this new era of strategic competition. We will no longer be strategically dependent on those who want to arm the global economy.”

In a broadcast on Tuesday, Truss admitted that her tax cut plans will initially benefit the wealthy more than the rest of society, but doubled in reversing a recent surge in national insurance, top earners would benefit from around £1,800. per year, and the lowest earner at around £7.

“I don’t accept this argument that cutting taxes is somehow unfair,” she told Sky News. “What we know is that people with higher incomes generally pay more tax, so when you cut taxes there’s often a disproportionate benefit because those people pay more tax in the first place.

“We should determine our tax policy based on what will help our country become successful. What will that economy yield that will benefit everyone in our country? What I don’t accept is the idea that corporate tax cuts don’t help people in general.”

Truss, who also proposes removing the cap on bankers’ bonuses, said she was willing to be an unpopular prime minister to take measures she believes will help the economy grow. “Yes, I am,” she said. “What’s important to me is that we grow the UK economy.”

Some Tory MPs believe Chancellor Kwasi Kwarteng could bring forward by one year his predecessor Rishi Sunak’s then Chancellor’s promise to cut income taxes by 1% from 2024. the energy crisis, as well as a longer-term evaluation.

Truss brushed aside concerns about the declining pound and the general state of the economy. “My belief is that Britain’s economic fundamentals are strong,” she said, rejecting claims that interest rates would rise as a result of her approach.

She previously said higher energy bills were a price worth paying to ensure the UK’s security against foreign aggressors, but the cost should not be passed on to households.

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