Dan Mitchell writes on his blog:
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From the UK, good news for supply-siders:
At last, David Cameron is being much bolder on tax
Here are five reasons why today’s tax cuts should be embraced enthusiastically.
1. They show that the Tories are re-embracing supply-side economics and the lessons they had originally learnt in the 1970s and 1980s but then appeared to forget
These tax cuts will boost people’s incentives to work and save; by allowing folk to keep more of their own money, they create a closer connection between effort and reward, something which is at once ethically sensible and economically efficient. George Osborne had previously shown that he believed this with corporation tax – he has slashed rates to improve investment and competitiveness – but had sent mixed messages on other taxes, wrongly hiking capital gains tax, for example. Today’s announcement confirms that the Tories are once again a pro-market party. Sure, the actual extent of the cuts is not huge, and they will take years to kick in. But they will nevertheless be worth an estimated £7.2bn a year by 2020. This is an important and welcome day in British politics. Supply-side economics are back, not a minute too late.