Tax hikes for millions if Corbyn wins
ALMOST two million workers face significant tax hikes if Jeremy Corbyn wins the race for No10, independent experts warned last night.
The Labour leader has told those earning more than £80,000 a year that they will be liable for higher income tax.
But in a new analysis, the Institute for Fiscal Studies said this would mean income tax hikes for 1.6million – the top 5 per cent of income tax payers – by the next tax year, 2020-21. And by 2023-24, even more people will have been dragged into the net, with 1.9million paying higher income tax as wages rise naturally – the top 6 per cent of income tax payers.
The IFS said someone with an annual taxable income of £100,000 would lose around £1,000 a year, while those on £150,000 would lose more than £5,000.
At the same time, it pointed out that the proportion of income tax paid by top earners had already risen substantially over the past decade. The top 5 per cent now contribute half of all income tax revenues, up from 43 per cent just before the financial crisis.
Meanwhile, John McDonnell disclosed the extent of Labour’s war on corporate Britain yesterday by unveiling a string of measures – including an ‘excessive pay levy’ on big business. In a major election speech, he said the ‘unfettered pursuit of profit maximisation’ has been to the detriment of workers and that corporate greed had ‘ruled the roost’ for too long. He said it was ‘obscene’ that people could become billionaires, saying ‘no one deserves to have that kind of money’. Not fit to be PM