Revealed: Labour’s triple tax whammy on MILLIONS as low-income families, small businesses and married couples stand to lose out despite Jeremy Corbyn claiming it will only hit the rich
- Millions of low and middle income families face a triple tax hit from Mr Corbyn
- Small print of party’s manifesto reveals ordinary families could be hammered
- Labour has vowed its £83billion-a-year tax proposals will only affect the rich
Millions of families on low and middle incomes face a triple tax hit from Jeremy Corbyn.
Labour has repeatedly vowed that its £83billion-a-year tax proposals will affect only the rich and big corporations.
But the small print of the party’s manifesto reveals that ordinary families, shareholders and small business owners could be hammered.
The first blow comes from Labour’s plan to scrap the marriage tax allowance, which is worth £250 a year to more than 1.7million couples.
Jeremy Corbyn holds documents as he speaks during a general eleciton campaign event in London on November 27
Secondly, a £9billion levy on dividend payments could hit individuals with modest share portfolios or small businesses. Lastly, a hike in capital gains tax – which Labour hopes will raise another £9billion a year – could punish those selling homes or shares.
The revelations came as a poll which accurately predicted the result of the last election forecast that Boris Johnson would win a 68-seat majority next month. The YouGov MRP survey put the Tories on 359 seats, Labour on 211, the SNP on 43 and Lib Dems on 13.
Former Tory leader Iain Duncan Smith, one of the architects of marriage allowance, attacked Labour’s plans to scrap it. He said: ‘In getting rid of it they are attacking millions of people often on very low incomes. You cannot get the allowance if you are on more than £50,000.
‘Corbyn has also made it clear he is going after people who have built up small nest eggs in shares, and economists are very clear that Labour’s plans to hammer corporation tax will lead to higher prices, which will hit the least well-off the hardest.’
Mr Corbyn was forced to admit on Tuesday – in a disastrous BBC interview with Andrew Neil – that his plans would hit families earning less than £80,000.
On another difficult day for Labour:
- Boris Johnson’s chief adviser Dominic Cummings said the election race was ‘much tighter’ than polls suggested – and warned Labour would ‘cheat’ Brexit supporters in any second referendum;
- The Conservatives accused Mr Corbyn of ‘out and out lying’ after he produced leaked documents purporting to show the Government had discussed the NHS during trade talks with the US;
- Labour is braced for more criticism of its tax and spending plans when the Institute of Fiscal Studies reveals a detailed analysis of its manifesto this morning;
- Mr Corbyn was isolated over anti-Semitism as a string of his closest allies, including Shadow Chancellor John McDonnell, voiced regret at the party’s failure to deal with the crisis;
- Mr Johnson signalled a break with the austerity of the last decade, telling the Spectator magazine he had warned David Cameron in 2010 it was ‘not the right way forward’;
- Nicola Sturgeon raised her price for a coalition deal with Mr Corbyn, saying she wanted an extra £4billion for the Scottish NHS, a second independence referendum and scrapping of Trident.
In Tuesday’s interview, Mr Corbyn insisted lower earners would not lose out overall from Labour’s plans because ‘they will also be getting a pay rise when we bring in a living wage’.
Richard Burgon, Labour’s justice spokesman, yesterday acknowledged that some lower-paid families could lose out but insisted ‘all of these people will be better off’ overall as a result of Labour’s spending proposals.
Richard Burgon, Labour’s justice spokesman, (pictured on Sky News today) acknowledged that some lower paid families could lose out but insisted ‘all of these people will be better off’ overall as a result of Labour’s spending proposals
Under Labour’s dividend tax plans, the tax-free allowance of £2,000 will be scrapped and basic rate taxpayers will see their bill rise from 7.5 to 20 per cent. Anyone with investments outside an ISA or pension could be hit by changes to dividend and capital gains tax.
Experts said pensioners on low incomes who are using investments to supplement their retirement could end up worse off. Former Tory pensions minister Baroness Altmann said: ‘This isn’t just rich shareholders, this is about ordinary people who have saved for their retirement.’ Laura Suter, personal finance analyst at AJ Bell, said: ‘Despite Corbyn’s claim he would only raise tax for the wealthy earning more than £80,000, the scrapping of the marriage allowance and changes to dividend and capital gains tax will hit lower earners too.’