Labour government would ‘put up taxes on people earning more than £70,000’

19 Apr

Under the current income tax regime, a basic rate of 20p tax is paid on earnings between £11,500 and £45,000, with a higher rate of 40p paid on earnings between £45,001 and £150,000, and an additional rate of 45p on earnings above £150,000.

Lowering the 45p threshold to £70,000 would mean someone earning £150,000 would pay an extra £4,000, as an extra £80,000 of income would come within the higher rate.

Business leaders said any plan to increase income tax would have a “double negative effect” on the economy because it would discourage entrepreneurship and raise less tax, not more.

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