Corbyn to hike corporation tax to 26%
Jeremy Corbyn is to announce plans to increase corporation tax from 19% to 26% by the end of the decade if he becomes PM. The money raised will be used to pay for a range of policies such as restoring student grants and providing free school meals for all primary school children. But David Gauke, the Chief Secretary to the Treasury, said: "He’s spent this damaging tax rise on businesses on 12 different things and he’s already dropped numerous things he’s said he’d do before." Corbyn’s pledge comes after he promised a “reckoning” for tax dodgers, greedy bankers and asset strippers during the launch of Labour’s election campaign. Commenting on Labour’s tax plans, David Smith in the Times says Mr Corbyn and John McDonnell risk killing the goose that lays the golden eggs with their pledge to increase rates for the top 5% - a move that would hurt the City just as it faces the effects of Brexit.
Source: The Daily Telegraph (10/05/2017)