Over the weekend, John McDonnell promised that Income Tax would not rise for most of the country but that a higher rate would be levied on those earning more than £80,000. Tax reform can be pretty technical; and so one needs to look at one or two things without losing sight of the idea that the richer should pay their share. Each tax payer has a personal allowance of £11,500 i.e. the first £11,500 of earnings is not taxed; this is clawed back if one’s income is £100,00 or more by levying a 60% marginal rate on those earning between £100,000 and £121,200. There is probably enough room for a new additional rate between the 40% levied at £42,000 and 60% levied at £100,000 and £80,000 p.a. is a lot of money; only 3% of income earners get that much. It will remain necessary to increase the amount paid by those earning more than £145,000 and redress the regressive nature of National Insurance, which negates much of the 20% band, converting it into a 32% tax burden. Labour’s promise is also that there will be no increase in employee NICs nor in VAT, although again that’s not enough … VAT has to come down from 20%.
Tag Archives: John McDonnell
In the continuing story of the NSA and their five eyes attempts to do to the world what the GDR’s Stasi did to East Germany, someone finally asks how did we let GCHQ capture and process the internet traffic of the British people, those using the transatlantic internet cables and using the decryption technology to spy on allies and diplomats engaged in economic talks and treaties. On the 31st October, Julian Huppert MP with cross bench support from Tom Watson MP and Dominic Rabb MP managed to get time in the Westminster Hall committee room to debate Parliament’s oversight of the Intelligence agencies, specifically GCHQ, but let’s not forget our old friends, the burglars at MI5. The debate was broadcast on Parliament TV, and transcribed in Hansard here. Both the Video and Hansard report the debate verbatim, and so if you want to hear what the MPs said, then you’ll have to use those resources. The rest of this article is a personal comment on the meeting.