Labour could bring in new tax bracket
Labour’s John McDonnell has refused to rule out a 60p tax rate on people earning over £100,000, after announcing plans for an income tax rise for anyone earning more than £80,000. The shadow chancellor said those most affected by income tax increases would be “the 1% at the top”, a figure that roughly equates to the proportion already on the highest, 45% rate, of income tax. But he added the party was still “consolidating and confirming our manifesto”. Meanwhile, Labour’s Emily Thornberry defended Labour’s tax plans after ITV’s Robert Peston noted the party’s £80,000 tax threshold will not affect MPs, who receive a salary of £74,000. The Telegraph’s leader argues that in light of Labour’s policy, the Conservatives should be making a stronger case for tax cuts.
Source: Financial Times (08/05/2017)