United States President Joe Biden called UK Prime Minister Liz Truss' planned tax cuts a "mistake" as it targeted the latter's highest earners.
The Democrat made the comments on Saturday after the British prime minister was forced to toss out large portions of her planned tax cuts last week. The situation was a result of market turmoil and deteriorating public confidence.
Biden on Truss' Tax Plan
Officials from the White House had hitherto declined to comment regarding the UK prime minister's policies. However, Biden broke his silence on the matter while talking with reporters in Oregon.
Biden said that he was not the only one who thought that Truss' tax cut plans were a mistake, saying that he disagreed with the idea. However, he noted that it was a decision that Great Britain had to make for itself.
Initially, the UK prime minister had pushed to eliminate the UK's top tax bracket, which would effectively cut taxes for citizens who were making more than $168,000 per year. But while she scrapped that plan earlier this month, she was unable to largely stabilize markets, as per Fox News.
Truss was ultimately forced to fire her Treasury chief and longtime friend, Kwasi Kwarteng, last week, over the situation. Furthermore, she walked back on her promise to cancel an increase in taxes on corporations.
When Kwarteng first announced Truss' tax cut plan in late September, the British Pound's value plummeted to near-parity with the US dollar. The prime minister's walk-backs have somehow succeeded in increasing the Pound's value from $1.03 to $1.12.
According to Politico, Biden, speaking during his campaign stop, said that it was "predictable" that Truss would have to reverse her plan. The latter's tax cut proposal was also openly criticized by the International Monetary Fund.
US Economy
Biden said that the American economy remained "strong as hell" as inflation is expected to play a major part in the upcoming midterm elections. However, he noted that he was also concerned about the rest of the world.
The Democratic leader added that the problem is the lack of economic growth and sound policy in other nations. Biden's comments on Truss' agenda are seen as an unusual move, as presidents tend to avoid making remarks on the domestic policies of their allies.
The statements come as the UK prime minister's newly-appointed chancellor, Jeremy Hunt, signaled further fiscal U-turns could be coming soon. In a statement issued overnight, the official said that the government had to be honest with the people and make some very difficult decisions both on spending and on tax.
Hunt noted that these would be focused on getting debt to fall but also protect and help struggling families, businesses, and people. On Sunday, he and Truss will hold talks at the prime minister's country retreat, Chequers, ahead of a fresh economic plan that is expected to be revealed on October 31.
While Truss announced her reversal of the tax cut, she noted that she was "absolutely determined" to carry on with her policies. She said that she had changed course "to reassure markets of our fiscal discipline," NBC News reported.
Related Article: UK PM Liz Truss Walks Back on Tax Plan After Mounting Pressure, Firing of Finance Minister
