World: UK scraps tax cut for wealthy that sparked market turmoil

What's at stake in this week's congressional vote to keep the government open, including Manchin's push to make it easier to build fossil fuel projects

  What's at stake in this week's congressional vote to keep the government open, including Manchin's push to make it easier to build fossil fuel projects Manchin's bill faces opposition from progressives and Republicans alike. It's the major sticking point in a deal to prevent a government shutdown.Republicans and Democrats alike have been pushing for the bill, which is referred to as a continuing resolution (CR). The measure allows Congress to fund the government for a short amount of time. Congress has less than a week to pass the bill, or the US will have its first shutdown since 2019.

BIRMINGHAM, England (AP) — The British government has dropped plans to cut income tax for top earners, part of a package of unfunded cuts that sparked turmoil on financial markets and sent the pound to record lows.

Chancellor of the Exchequer Kwasi Kwarteng speaking to the media ahead of the Conservative Party annual conference at the International Convention Centre in Birmingham. Picture date: Monday October 3, 2022. The British government has dropped plans to cut income tax for top earners, part of a package of unfunded cuts that sparked turmoil on financial markets and sent the pound to record lows. (Aaron Chown/PA via AP) © Provided by Associated Press Chancellor of the Exchequer Kwasi Kwarteng speaking to the media ahead of the Conservative Party annual conference at the International Convention Centre in Birmingham. Picture date: Monday October 3, 2022. The British government has dropped plans to cut income tax for top earners, part of a package of unfunded cuts that sparked turmoil on financial markets and sent the pound to record lows. (Aaron Chown/PA via AP) Britain's Chancellor of the Exchequer Kwasi Kwarteng speaks to the media ahead of the Conservative Party annual conference at the International Convention Centre in Birmingham, England, Monday, Oct. 3, 2022. The British government has dropped plans to cut income tax for top earners, part of a package of unfunded cuts that sparked turmoil on financial markets and sent the pound to record lows. (Aaron Chown/PA via AP) © Provided by Associated Press Britain's Chancellor of the Exchequer Kwasi Kwarteng speaks to the media ahead of the Conservative Party annual conference at the International Convention Centre in Birmingham, England, Monday, Oct. 3, 2022. The British government has dropped plans to cut income tax for top earners, part of a package of unfunded cuts that sparked turmoil on financial markets and sent the pound to record lows. (Aaron Chown/PA via AP)

In a dramatic about-face, Treasury chief Kwasi Kwarteng said Monday that he would abandon plans to scrap the top 45% rate of income tax paid on earnings above 150,000 pounds ($167,000) a year.

George Gilmore's wife targets accounting firm in tax liability lawsuit

  George Gilmore's wife targets accounting firm in tax liability lawsuit As of 2021, George and Joanne Gilmore owed almost $2.9 million in federal back taxes, according to a document filed by the Internal Revenue Service with the Ocean County Clerk’s Office. A federal tax judge’s decisionfrom April 2022, however, pegged the liability at about $1.6 million. “It certainly does appear …. that [the lawsuit] is a way to try to hoist the couple’s tax problem onto [the accounting firm] instead of dealing with it themselves,” Thomas Quinn, an attorney for Hutchins and the firm, said in a phone interview. An attorney for Joanne Gilmore did not respond to an email and call seeking comment.

“We get it, and we have listened,” he said in a statement. He said “it is clear that the abolition of the 45p tax rate has become a distraction from our overriding mission to tackle the challenges facing our country.”

The U-turn came after a growing number of lawmakers from the governing Conservative Party turned on government tax plans announced 10 days ago.

It also came hours after the Conservatives released advance extracts of a speech Kwarteng is due to give later Monday at the party's annual conference in the central England city of Birmingham. He had been due to say: “We must stay the course. I am confident our plan is the right one.”

Prime Minister Liz Truss defended the measures on Sunday, but said she could have “done a better job laying the ground” for the announcements.

Capitol rioter accused of bringing the stun gun that was used on cop Michael Fanone was given one of the harshest sentences yet

  Capitol rioter accused of bringing the stun gun that was used on cop Michael Fanone was given one of the harshest sentences yet FEMA Administrator Deanne Criswell joins Morning Joe to discuss the latest updates on Hurricane Ian and the preparations being made at the state and federal level.

Truss took office less than a month ago, promising to radically reshape Britain’s economy to end years of sluggish growth. But the government’s Sept. 23 announcement of a stimulus package that includes 45 billion pounds ($50 billion) in tax cuts, to be paid for by government borrowing, sent the pound tumbling to a record low against the dollar.

Britain's Chancellor of the Exchequer Kwasi Kwarteng speaks to the media ahead of the Conservative Party annual conference at the International Convention Centre in Birmingham, England, Monday, Oct. 3, 2022. The British government has dropped plans to cut income tax for top earners, part of a package of unfunded cuts that sparked turmoil on financial markets and sent the pound to record lows. (Aaron Chown/PA via AP) © Provided by Associated Press Britain's Chancellor of the Exchequer Kwasi Kwarteng speaks to the media ahead of the Conservative Party annual conference at the International Convention Centre in Birmingham, England, Monday, Oct. 3, 2022. The British government has dropped plans to cut income tax for top earners, part of a package of unfunded cuts that sparked turmoil on financial markets and sent the pound to record lows. (Aaron Chown/PA via AP)

The Bank of England was forced to intervene to prop up the bond market, and fears that the bank will soon hike interest rates caused mortgage lenders to withdraw their cheapest deals, causing turmoil for homebuyers.

State Stimulus Checks 2022: These States Are Mailing out Payments Next Week

  State Stimulus Checks 2022: These States Are Mailing out Payments Next Week Several states are issuing tax rebates in October. Find out if yours is one of them.Eligible Virginians should get a $250 rebate by Halloween, either as a direct deposit or printed check, and payments will also be heading out in October to residents in Hawaii and Indiana.

The cuts were unpopular, even among Conservatives. Reducing taxes for top earners and scrapping a cap on bankers’ bonuses while millions face a cost-of-living crisis driven by soaring energy bills was widely seen as politically toxic.

Truss and Kwarteng insist that their plan will deliver a growing economy and eventually bring in more tax revenue, offsetting the cost of borrowing to fund the current cuts. But they also have signaled that public spending will need to be slashed.

British Chancellor of the Exchequer Kwasi Kwarteng, left, and British Prime Minister Liz Truss at the Conservative Party annual conference at the International Convention Centre in Birmingham, England, Sunday Oct. 2, 2022. (Stefan Rousseau/PA via AP) © Provided by Associated Press British Chancellor of the Exchequer Kwasi Kwarteng, left, and British Prime Minister Liz Truss at the Conservative Party annual conference at the International Convention Centre in Birmingham, England, Sunday Oct. 2, 2022. (Stefan Rousseau/PA via AP)

Kwarteng said the government was sticking to its other tax policies, including a cut next year in the basic rate of income tax and a reversal of a corporation tax hike planned by the previous government.

British Prime Minister Liz Truss at the Conservative Party annual conference at the International Convention Centre in Birmingham, England, Sunday Oct. 2, 2022. (Stefan Rousseau/PA via AP) © Provided by Associated Press British Prime Minister Liz Truss at the Conservative Party annual conference at the International Convention Centre in Birmingham, England, Sunday Oct. 2, 2022. (Stefan Rousseau/PA via AP)

The pound rose after Kwarteng's announcement to around $1.12 — about the value it held before the Sept. 23 budget announcements.

Trump's resurgence forced Democrats to switch their midterm messaging from hailing accomplishments to warning against a GOP-led 'nation of fear, division, and darkness': report .
Democrats decided that bemoaning all the havoc Republicans would wreak were they in control trumps talking about all they good they feel they've done."I remember I got beat up in the campaign by saying that I wanted to unify the country and unify the parties," the Washington Post reported that President Joe Biden said recently. "You used to be able to do that. But things have changed a whole bunch.

See also