Biden: GOP tax cuts would cause ‘economic chaos’ like Truss in UK
President Joe Biden departs after announcing his administration's plans to eliminate junk fees for consumers, Wednesday, Oct. 26, 2022, in the South Court Auditorium on the White House campus in Washington. (AP Photo/Patrick Semansky)
President Biden on Wednesday said that a Republican majority in Congress would cause economic chaos like former Prime Minister Liz Truss did in the United Kingdom.
“You read about what happened in England recently, and the last prime minister, she wanted to cut taxes for the super wealthy — it caused economic chaos in the country,” Biden said in remarks at a virtual political reception for Rep. Cindy Axne (D-Iowa).
The president said that Republicans, if they win the majority in the House, want to extend former President Trump’s tax cuts. Biden’s closing message with two weeks until the midterm elections is that inflation will get worse if Republicans take over Congress, a warning he has issued at multiple events so far.
“Well, that’s what they did last time, and they want to do it again. And they want to make that tax cut permanent — that $2 trillion,” Biden said.
Truss resigned last week after her policies triggered further economic turmoil in the U.K., which is facing a looming recession and high costs of living. Her economic plan included tax cuts, which brought down the value of the British pound and increased the cost of mortgages in the country.
The tax provisions in Trump’s 2017 law that impact individuals largely expire at the end of 2025, which includes provisions that have provided tax cuts to low- and middle-income households.
The law cut individual income tax rates, increased the standard deduction and child tax credit, slashed the corporate tax rate from 35 percent to 21 percent and overhauled how the U.S. taxes corporations’ foreign earnings
Truss was prime minister for just 45 days and Rishi Sunak, leader of the Conservative Party and former Treasury chief, became prime minister on Tuesday. Last week, Biden issued a short statement in response to Truss’s resignation, reiterating his commitment to close cooperation between the U.S. and U.K. Truss became the shortest-serving prime minister in British history.