Labour is planning to increase income tax and corporation tax. And, predictably, it has walked into a storm of criticism. But there are bigger issues here, and we need an adult debate.
Labour plans to increase income tax on higher earners. The income tax rate on people earning more than £80,000 will rise to 45 per cent, and those earning more than £123,000 to 50 per cent. Corporation tax will go up too, up from 19 to 26 per cent by 2020 – assuming Labour wins the next election.
It is quite hard, by the way, to find all of that information. The media is so full of spin, all you can read is why the plans are evil, but struggle to find what the plans are. Then again, the Labour Party itself is no better, take a visit to its web site, and you get pages of beautifully presented waffle, and struggle to find hard facts.
It may be irrelevant of course, what is the point in discussing Labour’s tax plans, the odds of it winning the election are remote indeed. But the question of tax, and creating a more inclusive form of economy is crucial. We need a debate, and now seems to be as good a time as any. Read on….