John McDonnell responding to IFS research on Boris Johnson’s tax proposals
John McDonnell MP, Labour’s Shadow Chancellor, responding to IFS research showing Boris Johnson’s tax proposals will overwhelmingly benefit high earners, said:
“These proposals to raise NIC and income tax thresholds will rip out £10 to £20 billion a year from our already decimated public services, according to the IFS, and put those billions into the pockets of the rich.
“This government cannot be trusted with our public services – only a Labour government will end austerity and establish a fair tax system that serves the many, not the few.”
Notes to Editors:
- Options for cutting direct personal taxes and supporting low earners, by Robert Joyce and Xiaowei Xu, will be released at 0001 on Friday 27 September 2019 on the IFS website: ifs.org.uk. Embargoed copies are available from the IFS in advance.
- The research, according to the IFS press release, points out that the Government still has not specified by how much it will raise the threshold for NIC contributions. It notes that a £3 billion cut to employee and self-employed NICs would raise the incomes of the poorest 20 per cent of households by just 0.1 per cent on average, which pales in comparison with losses from benefit and tax credit cuts since 2010.
- The research shows that Boris Johnson’s proposal to raise the higher-rate income tax threshold to £80,000 would benefit the highest-income 8 per cent of adults and 13 per cent of income taxpayers. 75 per cent of gains would go to the highest-income 10 per cent of households. This part of Johnson’s tax proposals would cost £8 billion a year.