Lower earners WILL pay more tax under Labour: Jeremy Corbyn is left floundering after being told people on £14,000-a-year would see bills rise £400
- Jeremy Corbyn finally forced to admit that hundreds of thousands of people on modest incomes would pay more tax under Labour
- Labour leader has long claimed that his party’s policies would mean only businesses and those on more than £80,000 would pay more tax
- In his interview on the BBC with Andrew Neil, Mr Corbyn admitted scrapping the marriage tax allowance would cost many people £250 a year
Hundreds of thousands of people on modest incomes would pay more tax under Labour, Jeremy Corbyn was finally forced to admit last night that.
The Labour leader has long claimed that his party’s policies would mean only businesses and those on more than £80,000 would pay more tax.
But last week experts pointed out that many others would pay more, largely because Labour was scrapping the marriage tax allowance.
And in his interview with Andrew Neil last night, Mr Corbyn admitted this would cost many people £250 a year.
The Labour leader admitted he had no idea how much tax richer people pay, and he floundered under questioning over Labour’s plans for higher dividend taxes, which Mr Neil said could see someone on just £14,000 a year paying £400 more in tax.
Labour leader Jeremy Corbyn during a BBC interview with Andrew Neil, where he admitted hundreds of thousands of people on modest incomes would pay more tax under Labour
The marriage tax allowance enables couples to transfer their personal income tax threshold between them, cutting the amount of tax they pay.
At the start of the interview, Mr Corbyn claimed that ‘only those earning over £80,000 per year will see a tax increase’ under Labour’s plans.
But when challenged about the scrapping of the marriage tax allowance, he replied: ‘The marriage allowance is £250 a year.’
Mr Neil said: ‘These people, there’s almost two million of them, are going to lose £250 and they earn a lot less than £80,000.’
The Labour leader replied: ‘But they will also be getting a pay rise when we bring in a living wage. They will also be getting improvement in free nursery provision for two to four year olds.’
During the BBC interview on Tuesday night Mr Corbyn said scrapping the marriage tax allowance would cost many people £250 a year
Pressed twice on the fact that they will pay more tax, he said: ‘They’ll also get properly funded schools. They won’t get the advantage, it’s actually taking away £250.’
Mr Neil then asked him about Labour’s higher dividend taxes, which he said would hit people on modest incomes too.
He cited the example of someone on a state pension who has an annuity of £4,000, a small private pension and, because they have saved, a dividend income of £2,000.
The host said: ‘At the moment they pay £9 in income tax, that’s it. Under you they’ll pay over £400 in income tax. We’re talking about people who are just on £14,000 a year.’
Mr Corbyn replied: ‘They’ll be taxed on the basis of their total income. It’s a graded tax, so that is reasonable and fair to do.
‘The whole purpose behind our manifesto, which I have here, is to recognise that we have to do something about the underfunding of our public services and the poverty and inequality that austerity has brought to this country.’
Mr Neil then asked what share of income tax revenues were paid by the top 5 per cent of earners.
The Labour leader replied: ‘I couldn’t give you the exact figure, but they contribute quite a lot.’
When Mr Neil informed him they contribute 50 per cent of all income tax revenues, he replied: ‘But they are very high earners.’
JEREMY CORBYN’S FOUR REFUSALS TO APOLOGISE OVER ANTI-SEMITISM IN THE LABOUR PARTY
Andrew Neil: Many Jews, 80 per cent of Jews, think that you’re anti-Semitic. That’s quite a lot of British Jews. I mean, wouldn’t you like to take this opportunity tonight to apologise to the British Jewish community for what’s happened?
Jeremy Corbyn: What I’ll say is this. I am determined that our society will be safe for people of all faiths. I don’t want anyone to be feeling insecure in our society – and our government will protect every community…
AN: So no apology?
JC: …against the abuse they receive, on the streets, on the trains or in any…
AN: So no apology for how you’ve handled this?
JC: …or any other form of life.
AN: Try one more time. No apology?
JC: No, hang on a minute Andrew, can I explain what we’re trying to do?
AN: You have and you’ve been given plenty of time to do that. I asked you if you wanted to apologise and you haven’t.
JC: Andrew, I don’t want anyone to go through what anyone has gone through…
AN: And you’ve said that several times. I understand that, Mr Corbyn, I was asking you about an apology. Let’s move on to Brexit…
JC: Well hang on, can I just make it clear. Racism in our society is a total poison.
AN: You’ve said that several times. So you know we get that. I’m not arguing about that.
JC: Be it Islamophobia, anti-Semitism or…
AN: And you’ve said that too. Let’s move on to Brexit.
JC: …any other form of racism. And I want to work with every community to make sure it’s eliminated. That is what my whole life has been about.
AN: You made that clear and people will make up their own minds. Let’s move on to Brexit.