New economic analysis suggests that, if elected, the Labour party tax policies could cost the UK over 300,000 jobs and more than £25 billion in GDP.
In The Cost of Labour, published on Monday 22 September by the Centre for Policy Studies, Head of Economic Research, Adam Memon, estimates the potential cost to the UK economy of Labour’s tax policy proposals.
The report calculates that, if elected in the upcoming general election, Labour’s announced policies could result in 306,500 fewer jobs over the following four years.
The report derives this economic impact from the follow ten major tax policies promised by the Labour party:
- Increasing the Corporation Tax rate from 20% to 21%.
- Increasing the top rate of Income Tax from 45% to 50%.
- Reintroducing a 50% payroll tax on bank bonuses.
- Increasing the levy on bank balance sheets.
- Introducing a tax on houses worth above £2 million.
- Imposing a levy on the profits of payday lenders.
- Reintroducing Stamp Duty Reserve Tax.
- Introducing a Financial Transactions Tax.
- Introducing a new 10% Income Tax rate.
- Cutting and freezing Business Rates.
Memon concludes, “Whilst there may be reasons to increase taxes, perhaps to improve the fiscal balance or for redistributive purposes, the consequences for GDP and employment will be negative.”
- The Times: “The right-wing Centre for Policy Studies has examined the impact of ten key policies put forward by Ed Miliband, including raising corporation tax by one percentage point to 20 per cent and increasing the highest rate of income tax to 50 per cent.”
- The Daily Telegraph: “A report today from the Centre for Policy Studies calculates that Labour’s tax proposals could result in 306,500 fewer jobs over the following four years.”
- The Daily telegraph: “It is clear that Labour plans to increase the tax burden significantly,” said Adam Memon, head of economic research at the CPS.”
The Sun: “the Centre for Policy Studies think-tank said that, taken together, Labour’s planned tax policies could cost the UK more than 300,000 jobs and £25billion in GDP.”
- The Sun: “Adam Memon of the Centre for Policy Studies, said : “The rhetoric of a big minimum wage rise is not really matched by reality.””
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