First published: Prospectmagazine.co.uk, 8/05/2017
Labour’s plan to raise income tax on £80,000 earners doesn’t cut it
It’s not going to happen before the election, but one of these days, politicians will have to level with voters about tax.
Over the weekend, the Labour Party pledged to introduce higher rate income tax on people earning over £80,000, if it gets into office. That’s about 1.6m people. The party says 95 per cent of people will not pay higher income tax, and there won’t be a rise in VAT. This might make good politics for the beleaguered party, but the proposal is dishonest. So too is the Conservative Party—though for slightly different reasons. The party had previously pledged not to raise taxes, but Philip Hammond has now said that he doesn’t want to be bound by this, and it is thought that while VAT would not rise under the Tory government, income tax and national insurance contributions might, for some people….Read more: