Lib Dems have been commenting on the plans by Liz Truss, Kwasi Kwarteng and Jacob Rees Mogg to prevent household and business bills zoom out of control over the winter.
This morning Kay Burley interviewed Sir Ed Davey on Sky News about the government’s proposals for business and household relief. Davey said he was worried about the plans to cut corporation tax. Banks and bankers are among those that will get the lion’s share of that.
They are refusing to put taxes up, which I do support. Oil and gas companies are making huge profit… There should be a windfall tax on those and use that money to fund support for struggling families.
The video begins with the British Social Attitudes survey as this sets the context for Burley’s first question to Davey.
Jane Dodds said:
Plans laid out by Liz Truss will saddle future generations with debt due to increased borrowing. The Liberal Democrats are clear, help to deal with the energy crisis should be paid for by a real windfall tax on the obscene super profits of oil & gas companies.
Plans laid out by Liz Truss will saddle future generations with debt due to increased borrowing.
The Liberal Democrats are clear, help to deal with the energy crisis should be paid for by a real windfall tax on the obscene super profits of oil & gas companies 👇 pic.twitter.com/HrwoKC61aI
— Jane Dodds AS/MS 🔶🏴 (@DoddsJane) September 21, 2022
Christine Jardine said:
This Government has repeatedly been dragged kicking and screaming to the point of action but once again they fall short of what is required.
This Government has repeatedly been dragged kicking and screaming to the point of action but once again they fall short of what is required. pic.twitter.com/hQ1Lq6LqUk
— Christine Jardine 🔶 (@cajardineMP) September 21, 2022
Alex Cole-Hamilton said:
Liz Truss’s plan to borrow billions to inflate energy companies’ profits is lunacy.
Cost of living crisis: Liz Truss's plan to borrow billions to inflate energy companies' profits is lunacy – Alex Cole-Hamilton MSP | Edinburgh News https://t.co/FVq6tisnE3
— Alex Cole-Hamilton MSP🔶🇺🇦 (@agcolehamilton) September 21, 2022
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2 Comments
It really does not help promote a LibDem agenda when our leader says in the same sentence that he supports not increasing taxes and wants higher tax on energy companies. He may mean no increase in personal taxes but even then he knows that LibDem policies would involve higher taxes for those on higher incomes.
The current government’s economic and tax policies are those of the madhouse. However we are being totally dishonest by going on about the burden on future generations. Modern monetary economics teaches us that government borrowing is a ledger amount at the Bank of England and that as long as we don’t let inflation get out of hand, then it isn’t a problem. Of course this shower of a government is totally economically illiterate, but LibDems shouldn’t be.
Modern monetary economics argues that government can spend without borrowing or raising taxes up to the point that inflationary pressures arising from excess demand over supply capacity begins to generate increases in the general level of prices. With inflation in double digits, that point has been passed leaving two sources of funding for increased spending – borrowing in the debt markets at market rates of interest or taxation. Borrowing will normally be the preferred mechanism in an economic downturn and increased yields from general taxation as the economy is expanding.
Windfall taxes, as the name suggests, is a market correction mechanism when abnormal profits are generated by companies exploiting state assets or state granted monopolies.
The windfall tax applies to energy producers rather than suppliers. Petroleum Revenue tax is a tax on super-profits arising from the exploitation of oil and gas in the UK and the UK’s continental shelf. It was reduced to zero by George Osborne but was not abolished., so could be reinstated and applied to all fields in the North Sea. The extra tax on economic rents of the energy producers will help pay for the increased interest costs on government borrowing which has already doubled over last year Mini-Budget risks setting UK on ‘unsustainable path’, say IFS and Citi