UK drops plans for controversial top rate tax cut
The British government has reversed controversial plans to scrap the top income tax rate of 45% on earnings over 150,000 pounds a year. The proposed tax cut was unfunded – meaning the government would need to take on new debt to finance it. That sparked market turmoil, and huge criticism at home and abroad – including from the International Monetary Fund. After spending ten days defending the cuts, Prime Minister Liz Truss has now given in to the pressure