McDonnell pledges fairer tax system after Tories get chucked
A FAIR taxation system implemented by Labour would see corporations and the rich “paying their way more,” shadow chancellor John McDonnell said yesterday.
Asked to define who is rich, he said they would be individuals earning “above £70,000 to £80,000 a year.”
But when questioned on whether that would mean people in that income bracket paying more, Mr McDonnell added: “That’s not what we’ve said.”
He told BBC Radio 4’s Today programme that Labour would scrap giveaways to the wealthy such as corporation tax cuts and would collect more in inheritance and capital gains taxes.
Labour will also go into the snap general election on June 8 with a manifesto promising to cap senior executives’ salaries, with no bosses able to pay themselves above a certain multiple of what lower-paid employees receive.
Mr McDonnell said: “We want a fair system of taxation to pay for our public services. In the coming weeks, we will be publishing our proposals about how we establish that within our manifesto.
“I think there’s a general view in society at the moment that middle and low earners are being hit very hard with a combination — as we have seen from this government — of both income tax rises but also in terms of the burden placed upon them by stealth taxes.
“And also, as we saw, attempts by this government to increase national insurance payments on the self-employed.”
He added: “The rich will be above £70,000 to £80,000 a year and that’s roughly defined as what people feel is an earning whereby people feel they can pay more.”
Mr McDonnell argued that Theresa May’s early election call was more about the risk of an economic downturn than securing a mandate for her EU withdrawal plans.
“I don’t think this election is about Brexit,” he said.
“The government has seen that the economy at the moment is going to turn.
“We are seeing inflation increasing, we are seeing wages stagnate and we are seeing people in heavy debt as a result.”
Labour’s approach to Brexit talks would aim to secure “tariff-free access to the single market” and a managed and fair immigration system from the EU, he stressed.