Britain has become the first major nation to announce it will raise taxes after its economy recovers.
Corporate taxes will rise from 19 percent to 25 percent in April 2023, and tax-free allowances on personal income taxes will be suspended, treasury chief Rishi Sunak announced.
The two measures are expected to bring £65 billion – the equivalent of about $91 billion – to the British treasury by March 2026, the government said.
Current government support for jobless workers and shuttered businesses will be extended through September, Sunak said.
The U.K.’s economy will be performing at pre-pandemic levels by the second quarter of 2022, the independent Office of Budgetary Responsibility has predicted, after Britain suffered one of the world’s deadliest COVID outbreaks and the worst economic contraction among Group of Seven countries as well as its worst GDP collapse in 300 years.
The country has given at least one dose of COVID vaccine to a third of its adult population and is on schedule to have fully vaccinated all adults by August. It is assumed that the more people that get vaccinated, the quicker the government will unlock the nation.
TRENDPOST: Britain’s announced plan to raise taxes to begin to pay off massive debt incurred by locking down its economy is more of what will come across nations and around the world. As we have forecast, the higher taxes rise, the faster political anti-tax movements will grow.
