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Labour won't protect £80k+ earners from tax rises

Labour has indicated it would raise taxes for those earning over £80,000 after ruling out increases for people whose incomes are less than that amount.

 
Labour won't protect £80k+ earners from tax rises

Labour has indicated it would raise taxes for those earning over £80,000 if Jeremy Corbyn becomes prime minister.

Under these plans 95% of the population will not be subject to increases in their income tax over the next parliament, the party said. 

In a speech at The Museum of London Docklands in East London ahead of the launch of Labour’s election manifesto, shadow chancellor John McDonnell (pictured) said: ‘The choice at this election is very clear on tax, as there is currently only one party which is committing not to raise taxes on middle and low earners – and that is the Labour party.

‘If Labour is elected next month we will guarantee that for the next five years there will be no tax rises for income taxpayers earning less than £80,000 a year, no hikes in VAT and no changes in your national insurance contributions either.

‘The Labour party is now the party of low taxes for middle and low earners, while the Tories are the party of tax handouts for the super-rich and big corporations,’ he claimed.

Full details of the pledge, which is predicted to impact 1.2 million people, will be revealed later this month.

Right-wing lobbying group the TaxPayers Alliance claimed the rules could be complicated by the difference between earnings and income. 

It said as McDonnell only spoke about earnings not income people who receive income from pensions, rental property or dividends could be hit. 

John O'Connell, chief executive of the TaxPayers' Alliance, said: ‘Pledging to not increase taxes sounds good but unfortunately there are gaping holes in these proposals that will leave taxpayers and small businesses worried.'

He added: 'A better way for the parties to demonstrate they are on the side of taxpayers would be to pledge to cut the overall tax burden and leave more money in the pockets of those who earned it.’ 

10 comments so far. Why not have your say?

Jon

May 08, 2017 at 14:59

When Labour were last in power they raised the top rate from 40% to 50% as a TEMPORARY measure - they indicated that it would drop back to 40% within 2 years.

Then the Coalition was formed, and after 4 years the rate was dropped to 45% - two years later than Labour had promised and not back to 40%. Of course Labour howled that the Coalition were giving money to the rich !!!

So now, 8 years after Labour hiked the rate and 6 years after they said it would revert to 40% they now want to raise the top rate above 45%.

And, of course, raising the rate on income over £80k will not raise much in comparison with the deficit - you have to tax everyone more to raise anything like a decent amount. So, as usual, Labour are relying on the emotion of envy of the unwashed rather than sound economic facts.

And, of course Diane Abbott would spend any money raised several times over and still claim she was saving money.

No, we do not want another Gordon Brown who caused the overspend and therefore the present "austerity" programme. But perhaps too many voters do not understand this.

Incidentally I would not be in the bracket paying extra tax !

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LouisV-W4

May 08, 2017 at 15:43

No VAT increases for those earning less than £80k! Does this imply those earning more, may be hit with VAT increases? I guess we'll have to wait to see his fully costed plans!

We already know he believes anyone receiving rental income is a greedy, money-grabbing landlord, and only 'bosses' (who should earn less) earn money from dividends, so tax increases in those areas are a given. Unfortunately, his misguided views and the laws of unintended consequences, will ensure he hurts the low earners he says he will help.

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Jonathan

May 08, 2017 at 16:46

LouisV-W4,

Are you being serious with your question about "No VAT increases for those earning less than £80k"? If you read the article it says: "will be no tax rises for income taxpayers earning less than £80,000 a year, no hikes in VAT and no changes in your national insurance contributions either".

So they are saying, there will be on VAT increases for anyone, and no income tax rises for anyone earning less than £80k pa.

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LouisV-W4

May 08, 2017 at 17:43

The deliberate focus of McDonnell's 'policy' is on those earning less than £80k. I leave it to others to 'interpret' what he's saying. Regardless, Labour's policies don't add up, as Diane Abbott has ably demonstrated!

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Jonathan

May 08, 2017 at 17:48

I think it's quite clear what he's saying. People on more than £80k might be in for tax rises. But that's less than 5% of the population so it should be a vote winner for the majority of people.

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LouisV-W4

May 08, 2017 at 18:07

So, at least we know his plan is to soak the wealth creators and not just the 'wealthy'! The small business owners who employ more people in the UK than the large companies and the public sector. What do you think will happen to those earning less than £80k when their employers find they can't afford to keep them on? Oh, and while we are at it, let's have 4 more bank holidays, paid for by those small businesses. How would you vote if your job could be at risk in that situation? Do you care, just as long as Corbyn is elected?

Of course we can trust Labour with the economy!

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Jonathan

May 08, 2017 at 18:09

LouisV-W4,

I'm not voting. I'm just translating what's being said as you seem to be struggling with it.

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LouisV-W4

May 08, 2017 at 18:50

Voting is a hard won privilege. If you don't vote, you don't have the right to an opinion!

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Jonathan

May 08, 2017 at 19:50

I have an opinion and a right to it. So what does that explain other than you don't know what you are talking about?

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In the Dark

May 09, 2017 at 20:01

'Right-wing lobbying group the TaxPayers Alliance claimed the rules could be complicated by the difference between earnings and income.'

TPA right wing? Citywire need to explain as to why?

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