Boris Johnson, suspected by many to be preparing for a leadership bid, has called for Trump style tax cuts of income taxes, capital gains, and stamp duty.
Trump’s electoral promise to cut taxes by $1.5 trillion and to cut red tape is credited by many with adding fuel to a now booming American economy, rising stock markets, and in part it may have contributed to the rise of cryptos in 2017. A jealous Johnson says:
“The United States currently boasts economic growth rates far in excess of this country, at about 4.5 per cent, and with record low unemployment – and that growth is being driven not just by the US government’s decision to cut taxes and regulation, but perhaps even more by psychology: by the sense that the government wants to cut taxes, wants to liberate and energise people. Do we send out that signal, here in this country? I am not so sure.”
The former British Foreign Secretary is putting up a fight against Theresa May’s Brexit plans with a showdown expected in weeks during the Conservative Party Conference starting this October 3rd.
Ahead of it, Johnson was recently criticized for being a one trick pony, as in Brexit only, with Johnson’s reply so being a column on Sunday that says:
“We should also remember the phenomenon first identified by the great Muslim scholar Ibn Khaldūn in 14th-century Tunisia, and now ascribed to Arthur Laffer: that if you cut the right taxes, you can actually increase receipts for government. And with that in mind, we should be looking not at rises but at cuts to income tax, capital gains tax and stamp duty.”
The British economy is growing at its slowest rate in the G7 with the government debt, unlike in America, decreasing recently after years of public spending cuts.
Johnson says some of that wiggle room should be used to energize the people, with the potential Prime Minister candidate so having in mind a copy pasting of America’s policy as far as the economy is concerned and in regards to immigration in aiming to encourage high skilled immigration while reducing or limiting low skilled immigration.
What that would mean for our space would depend on the details of what exactly Johnson plans, but lower capital tax rates should benefit crypto holders, while lower income taxes may provide with more disposable income, some of which may find its way to cryptos.
More important might be the general approach towards cryptocurrencies. David Cameron in effect championed Fintech more generally and this space more subtly starting in 2014, giving Britain a leadership role where regulations are concerned and London the title of the financial capital of the world.
In contrast, Theresa May has given up that leadership position by not quite keeping up with new innovations, such as ICOs. Moreover the few remarks she has made regarding this space have come across as cold.
Johnson may bring back some optimism in Britain, especially if he follows David Cameron’s book and maybe even gives him an advisory role as the public generally approved of Cameron, rewarding him with a conservative majority for the first time in 30 years or so.
A majority May lost, with the question of how Johnson would fare probably to be tested in a general election if he does bid for the leadership, with such election perhaps once a Brexit deal is ironed out with it becoming a proxy of sorts on whether to accept the deal or otherwise.
If events so unfold, there would be no greater pantomime than Johnson v Corbyn. Which may mean Johnson bites his time, but it doesn’t look like Corbyn is going anywhere, so conservatives may have to face him again in a general election.