Boris Johnson raises UK taxes to highest since WWII
Margaret Thatcher must be turning in her grave.
British Prime Minister Boris Johnson has just abandoned two of his flagship promises from his 2019 election campaign and raised taxes significantly.
In order to cover the unforeseen costs of the pandemic for the National Health Service, the profit tax levied to pay the NHS will rise to 13.5%, from 12%. An additional 2% tax will apply to all income over 50,000 pounds ($ 69,000) per year. Workers with pensions will also pay tax for the first time in their history.
The tax, which the Conservative Party called an employment tax, will also be levied on employers. Dividend taxes will also increase by 1.25 percentage points on dividends. All of this is a warning that Britain’s economic recovery may be aborted.
Johnson explained his tax and spending frenzy by saying, “I accept that this breaks a clear commitment, which I don’t do lightly. But a global pandemic was not on anyone’s manifesto. “
Several members of Johnson’s cabinet have also warned of the political fallout. Jacob Rees-Mogg, the leader of the House of Commons reminded the Express Journal that during his successful campaign for the presidency of 1988, George HW Bush had promised “Read my lips: no new taxes”. But in 1992, his percentage of the vote fell from 54 percent to 37 percent despite the presidency’s end of the Cold War and the success of the Iraq War. “Voters remembered these words after President Bush forgot themRees-Mogg recalls grimly.