Tax and Fiscal Policy

Hard to imagine a “worse combination” than VAT cut followed by tax rises


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IEA research quoted in The Daily Telegraph

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Professor Philip Booth writes for City AM

IEA expert quoted in The Daily Telegraph

In response to reports that the Chancellor, Rishi Sunak, is said to be considering a VAT cut followed by tax rises over the longer term, IEA Economics Fellow Julian Jessop told The Daily Telegraph:

It’s hard to imagine a worse combination than a temporary VAT cut to stimulate spending that is likely to happen anyway, offset by the threat of future tax rises that would cast a long shadow over the economic recovery.

Read the article in full here.



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