Higher Taxes for Higher Spending v Austerity
Published / Last Updated on 25/11/2019
Higher spending on services = higher taxes or lower taxes = lower spending on services - you decide but here are some tasters:
Labour’s Tax Manifesto
- Increase corporation tax = raise extra £23.7bn – not make us more competitive in a post Brexit World – not the 17% Tory Target – but gradually move back 21% small companies and 26% main rate.
- CGT at income tax rates - raise £13 bn tax and scrap annual allowance!
- Lower income taxe earnings thershold from £15k to £80k for start of additional tax rate at 45% and a new Super-rich tax rate for those earning over £125,000
- Dividends tax at income tax rates with no tax free dividemd allowance. This would be no more 7.5%, 32.5% and 38.1% tax rates but will be taxed at 20%, 40%, 45% + Super Rich Tax %
- Scrap Married Persons Allowance
- Second homes tax – a wealth tax equivalent to 2 X council tax rates. This is an annual levy on second homes that are used as holiday homes equivalent to 200% of the current council tax bill for the property.
Conservative's Tax Manifesto
They have not released their tax manifesto yet but what we do know:
- Corporation Tax rate cuts from 19% to 17% have been suspended
- 3% extra stamp duty for non UK residents buying UK property
- Plans to fixed Net Pay low earners and plans to tackle high earner taper relief.
There is no real substance yet – just 'lose' plans to perhaps increase overall tax take by 1% of GDP but no details.
The Conservatives seem to believe 'less is more'.