World News

Labour tax plans WOULD cost less well off couples £250, says McDonnell

Labour’s tax plans WOULD cost less well off married couples £250 if it wins the election admits John McDonnell – but he insists they will make it back through pay rises and a ‘whole range of benefits’

  • The shadow chancellor insisted he would preside over a ‘fair taxation system’
  • He conceded scrapping marriage tax allowance would cost couples £250 
  • But he said it was an unfair and discriminatory tax relief  
  • He hopes to gained the keys to 11 Downing Street after Thursday’s election

Lower-paid workers will be stung by a £250 tax rise if Labour win the election, John McDonnell admitted today.

The shadow chancellor said he would preside over a ‘fair taxation system’ if he gained the keys to 11 Downing Street next Thursday.

But quizzed on his plans on television today he said that the party’s plans would not just hit billionaires and other extremely well-off individuals.

Appearing on the BBC’s Andre Marr Show he conceded that the removal of the marriage tax allowance would hit some married couple’s pockets to the tune of £250.

But he insisted the allowance, available to around 1.7 million couples on a low income, was an ‘unfair’ bonus because it was not available to those who cohabit. 

He said: ‘What they’ll lose is about £250 maximum. What they’ll get in return is free childcare … if they’re on minimum wage they’ll have a three and a half thousand pounds, nearly, increase. 

Appearing on the BBC ‘s Andre Marr Show Mr McDonnell conceded that the removal of the marriage tax allowance would hit some married couple’s pockets to the tune of £250

‘If they’re working for the public sector, a £1,600 pay increase on the five per cent we’re giving them. 

‘This whole range of benefits they’ll get for that.’ 

He said Labour had been opposed to the Tory marriage incentive since its inception and had proposed scrapping the tax break – which only applies to couples where one person earns less than £12,500 in personal allowance – in their 2017 manifesto. 

‘Do you know why it was unfair when it was introduced? It was introduced as a tax allowance for married couples but not people living together, he added.

‘Why discriminate in that way? Do you mean to tell me people are getting married for £250? It doesn’t make for much of an incentive, does it?’

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.

A £9billion levy on dividend payments could hit individuals with modest share portfolios or small businesses. 

And a hike in capital gains tax – which Labour hopes will raise another £9billion a year – could punish those selling homes or shares.

Source: Read Full Article