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Kwasi Kwarteng issues pre-Budget tax warning to Boris Johnson

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‘We can’t tax our way to wealth’: Kwasi Kwarteng issues a pre-Budget tax warning to Boris Johnson – as he also accuses UK companies of trying to keep wages low with cheap foreign labor

  • Jacob Rees-Mogg warned UK will be ‘taxed as high as it can afford’
  • Said it’s ‘just untrue’ to think there is ‘extra tax’ that can be found from people
  • Kwasi Kwarteng said the same, warning the UK ‘cannot tax our path to wealth’
  • Comments will be seen as warning shot as Boris Johnson prepares for Budget










Ministers fired a budget warning shot at Boris Johnson and Rishi Sunak as they warned of further tax hikes.

Commerce Minister Kwasi Kwarteng warned that “higher tax is basically a tax on economic activity,” adding: “I don’t believe we can tax our way to wealth.”

His cabinet colleague, Jacob Rees-Mogg, echoed a similar sentiment when he said the UK is being “taxed as high as the country can afford” and that it is “simply incorrect” to think there is “additional tax” that is painless. can be extracted from the pockets of families.

The House of Commons leader said if taxes are raised too far, the Treasury will “find there is less money” because the rich will simply move their assets abroad.

The comments will be seen as a direct challenge to the Prime Minister and Chancellor as they prepare to deliver the fall budget on October 27.

Meanwhile, Mr Kwarteng has also criticized companies for asking for more visas for foreign workers, accusing them of keeping wages low for British workers.

Some companies have called on the government to issue visas to allow workers from EU countries to come to the UK to close workforce gaps amid supply chain disruption.

But Mr. Kwarteng said: the Conservative Home website that British voters had “rejected the low-wage, high-immigration model” at the Brexit referendum, as he rejected calls for more visas to be issued.

He said the UK is currently in a ‘transitional phase’, explaining: ‘What we are seeing now is part of that transition. You’re right in saying that people are resisting this, especially employers who benefited from an influx of workers who could keep wages low.’

Commons leader Jacob Rees-Mogg has said UK will be ‘taxed as high as it can afford’

Company Secretary Kwasi Kwarteng has warned that

Company Secretary Kwasi Kwarteng has warned that “higher tax is basically a tax on economic activity,” adding: “I don’t believe we can tax our way to wealth.”

The comments will be seen as a direct challenge to the Prime Minister and Chancellor as they prepare to deliver the fall budget on October 27.

The comments will be seen as a direct challenge to the Prime Minister and Chancellor as they prepare to deliver the fall budget on October 27.

Mr Johnson tore a Tory manifesto pledge not to raise taxes last month when he announced plans to increase National Insurance to give the NHS and social care a financial boost.

That decision sparked widespread concern from the Tory as MPs predicted a backlash at the ballot box.

The state of the country’s finances in the wake of the coronavirus pandemic has sparked fears of further tax hikes as the government tries to balance the books.

But Mr Rees-Mogg warned of additional tax hikes when interviewed on the Telegraph’s “Chopper’s Politics” podcast.

Grilled by a group of sixth-year students as to why billionaires don’t pay more taxes, Mr Rees-Mogg reportedly said, “We’re being taxed as heavily in this country as we’ve been… pretty much since the war, especially since Harold Wilson was Prime Minister.” .

“The idea that all that extra tax has to be picked is just wrong. If we want to have a strong and growing economy, we will be taxed as much as the country can afford.’

The Tory frontbencher said that “actually if you raise taxes, you’ll find there’s less money, partly because billionaires can just leave.”

He said higher taxes also “decrease economic growth” and “it’s economic growth we need’ to pay for public services.

Mr Sunak and Mr Johnson launched a tax attack on national insurance last month, sparking widespread concern among the Tory

Mr Sunak and Mr Johnson launched a tax attack on national insurance last month, sparking widespread concern among the Tory

Mr Rees-Mogg said the Tories “have always been the party of low taxes and sound money”, but “sometimes there is a tension between the two”.

The comments are likely to raise eyebrows at the Treasury, with senior ministers normally dodging questions about tax policy by insisting they are a matter for the Chancellor.

Mr Kwarteng was asked during an interview with the Conservative Home website whether he believes the government has “no more room to raise taxes”.

The company secretary said: “I’ve never understood how we stimulate economic activity by raising taxes. I always come back to that.

“We can talk about raising taxes in the short term to deal with a crisis in the near term. But broadly speaking, a higher tax is in fact a tax on economic activity.’

Mr. Kwarteng was asked about Mr. Sunak’s decision to increase the corporate tax rate.

He said the chancellor is “doing a fantastic job” and added: “But do I broadly believe in higher taxes? New. I don’t believe we can tax our way to riches.”

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