Daily Archive: May 14, 2017

May
14

‘We are a cautionary tale': Kansas feels the pain of massive Trump-style tax cuts

In 2012, Kansas did what Donald Trump wants to do: it introduced huge tax cuts to try to boost growth. Today, the state is out of money – and residents are angry

Kansas is broke – but you wouldn’t guess it looking at its shining state capitol in Topeka. The imposing limestone monument, crowned by a shiny copper dome and limned with John Steuart Curry’s luminous murals, has just undergone a $325m facelift. What’s happening inside the state house is a lot less pretty, and may well foreshadow the far uglier battle looming over the future of taxation in the United States.

Related: Trump under fire over ‘huge tax cut for the rich’

There was no ‘shot of adrenaline’ – you didn’t have to be an economist to see that

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May
14

Jobs market will suffer a Brexit slowdown, say experts

‘Significant proportion’ of UK workers face falling living standards, with lower pay rises and higher unemployment predicted

British workers should brace themselves for rising unemployment and falling real pay in the year ahead as the impact of a Brexit slowdown is increasingly felt in the jobs market, reports have warned.

The era of rapidly increasing employment is over, according to the forecasting group EY Item Club, which on Monday predicted the unemployment rate will rise from 4.7% now to 5.4% in 2018 and 5.8% in 2019.

Related: Bank of England warns Brexit vote will damage living standards

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May
14

Final taxpayer shares in Lloyds Banking Group to be sold off

Government plans to sell last remaining shares this week eight years after pumping in £20bn to prevent bank’s collapse

The government is expected to sell off its remaining shares in Lloyds Banking Group in the coming week, marking a watershed moment for the sector after the financial crisis.

Eight years after pumping in £20bn to prevent the bank from collapsing, taxpayers will no longer own any shares in an institution that was created in the depths of the financial crisis when Lloyds TSB rescued HBOS.

Related: Lloyds profits double to £1.3bn despite PPI and fraud payouts

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May
14

Is Labour’s manifesto living in fantasy land? Quite the opposite | Larry Elliott

Imperfect it may be, but Labour’s manifesto recognises the economic status quo can’t be kept going for much longer

Ten years ago this month, Britain was on the cusp of change. Two things were about to happen, one planned and one unexpected.

The change everybody knew about was that Tony Blair was going to stand down as prime minister after 10 years in the job, during which time he had won three elections on the trot.

Related: Mohamed El-Erian: ‘we get signals that the system is under enormous stress’

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May
14

Philip Hammond calls China a ‘natural partner’ as he seeks post-Brexit trade deals

Chancellor tells summit Beijing’s vast $990bn infrastructure plan is an ‘opportunity to strengthen ties’ with China

China lays out $900bn Silk Road vision amid empire-building claims

The chancellor, Philip Hammond, has called for closer economic ties with China as Britain enters a new, post-Brexit era.

Speaking at the start of a summit in Beijing celebrating President Xi Jinping’s “Belt and Road initiative”, Hammond heaped praise on his hosts and said Britain was a “natural partner” for Beijing as it pushed ahead with a massive infrastructure campaign some call the most ambitious in history.

Related: China’s Xi lays out $900bn Silk Road vision amid claims of empire-building

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