Labour's tax plans savaged by IFS

by Guest Tue Apr 28, 2015 3:46 pm

Labour's tax plans have been strongly criticised by Britain's most respected economic forecaster amid warnings that its flagship policies will raise "very little money" and inhibit aspiration. The Institute for Fiscal Studies said that plans by Ed Balls, the shadow chancellor, to bring back the 50p rate of tax could raise as little as £110million and may even end up costing Britain money. It said that plans to introduce a 10p rate of tax are "unjustifiable" and will have little impact, while Labour's plans to cut tax relief for higher earners will create a "cliff edge" and leave people significantly worse off if they get a pay rise.

The forecaster said the Conservatives have set out just ten per cent of their proposed £12 bn of welfare cuts. Meeting the target would see spending on working age benefits fall to the lowest level since Margaret Thatcher's last year of office.

http://www.telegraph.co.uk/news/general-election-2015/11568086/Labours-tax-plans-savaged-by-IFS.html

by Irn Bru Fri May 01, 2015 9:02 pm

Nemesis wrote:Labour's tax plans have been strongly criticised by Britain's most respected economic forecaster amid warnings that its flagship policies will raise "very little money" and inhibit aspiration. The Institute for Fiscal Studies said that plans by Ed Balls, the shadow chancellor, to bring back the 50p rate of tax could raise as little as £110million and may even end up costing Britain money. It said that plans to introduce a 10p rate of tax are "unjustifiable" and will have little impact, while Labour's plans to cut tax relief for higher earners will create a "cliff edge" and leave people significantly worse off if they get a pay rise.

The forecaster said the Conservatives have set out just ten per cent of their proposed £12 bn of welfare cuts. Meeting the target would see spending on working age benefits fall to the lowest level since Margaret Thatcher's last year of office.

http://www.telegraph.co.uk/news/general-election-2015/11568086/Labours-tax-plans-savaged-by-IFS.html

The IFS never said that at all about the 50p tax rate. They were quoting figures published by the OBR. The IFS position was that they don't know what the return would be. It's in the report.