The co-leader of the Green Party, Jonathan Bartley, is calling on the Government and Official Opposition to rethink their support for effectively slashing tax rates for top earners.
Yesterday the Shadow Chancellor backed Government plans to raise the threshold for the 40p tax rate – a move which will benefit only the top 15% of earners [2].
The 40 per cent higher rate is currently paid on income over £43,001. Current plans will see the threshold raise to 45,000 in 2017 – costing the exchequer over £2bn by 2021[3]. The Conservative manifesto pledged to raise it to £50,000 and the Chancellor is expected to announce moves towards that goal on Wednesday.
Jonathan Bartley, co-leader of the Green Party, said:
“The British economy is clearly in a precarious state, and both our NHS and welfare state are teetering on the brink of collapse. In that context it is utterly misguided to see the Labour Party swing behind the Tories to cut tax for the top 15% of earners. Those who can afford to pay more in these hard times should be doing so – yet we see a cross-party consensus emerging for handouts to the highest earners.
“The Green Party would not raise the threshold on the 40p tax rate – and we’d look to increase top rate tax for those who earn the most. Hard choices have to be made in this year’s Autumn statement – and that must mean ensuring that those with the most contribute the most as we face up to the challenges in post-referendum Britain.”
Notes:
[1] http://www.cityam.com/253974/shadow-chancellor-john-mcdonnell-just-said-hed-back-rise
[2] https://www.gov.uk/government/statistics/number-of-individual-income-taxpayers-by-marginal-rate-gender-and-age Around 14.5% of earners pay top rate tax.
{LINK_TO_UNSUBSCRIBE}