Sir Keir Starmer refuses to rule out income tax hike, promising fairer system
All three positions raise the prospect of Sir Keir running in the May 2024 general election by proposing to raise the overall level of taxation in the UK.
Mr Johnson’s decision to break the Tory manifesto pledge not to increase national insurance in order to pay for welfare reforms and increased NHS spending have pushed the tax burden to its highest level since the post-war years.
Ms Reeves had previously told the Sunday Times that she had “no plans” to increase income tax, adding: “I think people who derive their income from wealth should have to pay more.”
A Labor press release explaining the party’s new tax stance says there are up to a thousand different tax breaks that are collectively worth at least Â£ 174 billion a year.
The statement specified two reliefs that would be removed – the tax break for schools deprived of their charitable status and a tax break for private equity managers.
Non-domiciliary tax status, which allows someone to pay less tax if they live abroad, and tax breaks for investments in venture capital trusts have also been identified as areas to focus on. examine.
Focus on tax relief
The statement said VAT exemptions for food would be maintained, but it was not yet clear what other tax breaks would remain in place.
A Labor source has played down the possibility of changing the pension tax break.
Ms. Reeves will say, âThere are hundreds of different tax breaks in the system.
âSome are important, but too many of them just offer loopholes for those who can afford the best advice.
âFor businesses, they create additional layers of complexity to navigate, and added together they cost more than our entire NHS budget.
âWe will look at every tax break. If it is not profitable for the taxpayer or the economy, we will remove it.
“Labor will tax fairly, spend wisely and run our economy at full capacity.”