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Billionaire tycoons ‘would escape Labour tax hikes’ with the burden falling on wealthy middle class instead


Labour’s proposed rise in income tax would mostly affect those earning under £200,000, a study says

Jeremy Corbyn called for a new income tax rate of 45 per cent for anyone earning £80,000 and 50 per cent for those paid more than £125,000.

Jeremy Corbyn

Jeremy Corbyn wants to raise billions of pounds by hiking income tax

But a respected think-tank says that most of the burden would end up falling on the well-off middle classes – rather than on the wealthiest Brits.

That is because the ultra-rich are more likely to shift money offshore or change the way they are paid, according to the Institute for Fiscal Studies.

And businessmen who own their own companies can decide when they pay themselves profits, meaning they can make their income more tax-efficient.

The IFS also said in an analysis yesterday that Labour’s tax plans would raise less than the £6.4billion they claimed.

Philip Green

Tycoons such as Philip Green were at the centre of Labour attacks on the wealthy

The think-tank said: “Estimates suggest that this additional revenue would likely have come predominantly from those with incomes between £80,000 and £200,000, rather than those with the very highest incomes.”

Mr Corbyn pledged to spend the supposed tax windfall on new policies such as the abolition of tuition fees.

The Labour boss’s anti-tycoon rhetoric focussed on controversial figures including Philip Green and Mike Ashley.

But if the IFS analysis is correct, billionaires like them will be less affected than people earning low six figures.

Labour sources claimed that other proposed tax changes – such as a rise in corporation tax – would hit the ultra-wealthy even if they escape the income tax hike.

Source: https://www.thesun.co.uk/news/4303797/billionaire-tycoons-would-escape-labour-tax-hikes-with-the-burden-falling-on-wealthy-middle-class-instead/

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