Labour propose new tax hikes

 Labour challenger Smith proposes wealth tax

Labour Party leadership challenger Owen Smith has proposed the introduction of a wealth tax on the UK’s richest 1%, as part of a bid to outflank current leader Jeremy Corbyn on the left of the party. Mr Smith said a 15% charge on unearned income for those earning over £150,000 would raise £3bn a year. Speaking at a campaign event at Orgreave, near Rotherham, the former work and pensions spokesman also vowed to reinstate the 50p tax rate and reverse cuts to CGT and IHT. There would also be no more cuts to corporation tax under Mr Smith’s plans. Accountants questioned the wisdom of proposals, arguing that anyone likely to be hit by the levy could easily relocate abroad.

Source:   The Times (28/07/2016)   Financial Times (29/07/2016)