both parties are utter bobbins -
This is what the IFS briefing says about
Labour and Tory tax policies.
Labour have a set of policies intended to raise £49 billion per year from the “rich” and, overwhelmingly, from companies. The policies would indeed raise tax significantly. But the £49 billion calculation includes some factual mistakes with regard to part of their tax avoidance package, optimistic assumptions and unspecified tax increases. Their proposals could be expected to raise
at most £40 billion in the short run, and less in the long run.
The large majority of Labour’s tax rises come from the taxation of companies. These can raise significant sums and the headline rate under Labour would still be the lowest in the
G7. But as ever there are real trade-offs. Like all taxes these would reduce the incomes of UK citizens – through lower wages, higher prices, or lower investment returns including those accrued within private pensions;
The Conservatives have few tax proposals. Their promise to raise the income tax personal allowance to £12,500 would leave about 24 million basic rate payers £33 a year better off (in today’s prices). Factoring in the increase in the higher rate threshold too, around 4 million higher rate taxpayers would gain £208 per year in total. Approximately the highest-income ½ million individuals – who do not get a personal allowance – would gain £175 per year. The
Conservatives have given themselves the freedom to raise rates of income tax and national insurance contributions, but have made no other commitments.