I have mentioned Russ in Cheshire before. He has proved to be an interesting if unconventional twitterer. What follows is no more than the truth and yet practically every media outlet treats Labour’s tax proposals as rampant Marxists stealing all of our income. Really?
Labour’s tax plan only affects people earning more than 3 average salaries And it only takes away 5% of their 4th average salary. Their first 3 average salaries are unaffected. If you can’t figure out how to cope on the wages of 3 people, you probably don’t deserve to earn it.
If I calculate broadly correctly when you earn £80,000 per year, you get £4,583 in your bank account after tax every month. Whereas Labour’s income tax plans would result in you getting £4,561 instead.
I’m afraid anyone complaining is, I have to suggest, protesting too much…
Just consider these ONS derived statistics:
The average yearly wage: £1,204
The average house price: £4,690
The average house cost 3.89 x the average yearly salary.
The average yearly wage: £26,208
The average house price: £234,853
The average house costs 8.96 x the average yearly salary.
And this is not even taking into account the median wage – which is a fairer yardstick – because it is the point where half of the population earn less than it – and half earn more. With a few CEOs on a squillion or more the average is going to be distinctly favourable to the status quo.
So a bit of extra tax in order to damp down inflation – well actually, since people on £80,000 I doubt spend over much of it (I suggest much goes to some form of savings) they probably don’t even need to damp down inflation. But Labour will probably need either to create money by just spending it or, more conventionally, issue government bonds (in return for shares) if they need to nationalise.
But Labour, should they gain power (entirely up in the air, it would seem to me at the moment) would need to have priorities because of the disaster that is the current government.
So I’d suggest they should be careful with government nationalisation – Labour are in any case broadly in favour of the co-operative model.
With so much to do so quickly, Labour should start by having a ‘rigorous buyer’ system in place before any form of nationalisation – in order to ensure the companies are on their mettle, rather than hollowed out.
True, that might mean the government will eventually pay a bit more – but when the government has its own bank that creates the money it is paying in does it really matter?
And if industry gets worried – well, Corbyn certainly isn’t everlasting.
Whereas Brexit, could well be.