Tax hikes for mil­lions if Cor­byn wins

Scottish Daily Mail - - News - By Daniel Martin Pol­icy Edi­tor

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

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