1/6 The BBC is disputing Corbyn’s claim that the Tories have "slashed taxes for the richest".
@BBCRealityCheck says it's “hard" to describe Tory changes as "taxes for the richest being slashed”.
Really? This needs its own reality check. Bear with me.
@BBCRealityCheck says it's “hard" to describe Tory changes as "taxes for the richest being slashed”.
Really? This needs its own reality check. Bear with me.
2/6 First, there's a sleight of hand in defining 'richest'.
@BBCRealityCheck acknowledges the Tories abolished the 50p tax rate for income of £150,000+.
But it measures the impact of this by using data for the top 10% when less than 1% of earners - the very richest - benefited.
@BBCRealityCheck acknowledges the Tories abolished the 50p tax rate for income of £150,000+.
But it measures the impact of this by using data for the top 10% when less than 1% of earners - the very richest - benefited.
3/6 Second, there's the glaring omission of Capital Gains Tax.
For the rich, tax on wealth gains are a much bigger deal than income tax.
The Tories have cut CGT for high earners from 28% to 18%.
That yields a £1m tax saving on an asset bought for £10m and sold for £20m.
For the rich, tax on wealth gains are a much bigger deal than income tax.
The Tories have cut CGT for high earners from 28% to 18%.
That yields a £1m tax saving on an asset bought for £10m and sold for £20m.
4/6 Third, there's no mention of Entrepreneur's Relief - possibly the biggest single Tory giveaway.
In a blatant abuse of the term 'entrepreneur', they've opened ER to investors generally and increased the allowance from £1m to £20m.
Explained here: steve-howell.com/tax-breaks-nee…
In a blatant abuse of the term 'entrepreneur', they've opened ER to investors generally and increased the allowance from £1m to £20m.
Explained here: steve-howell.com/tax-breaks-nee…
5/6 Fourth, @BBCRealityCheck bottles the big issue of Corporation Tax, cut from 28% to 17%. It claims there's no 'consensus' about its benefit to individuals.
Not true. Apart from business lobbyists, no one seriously disputes that CT cuts have helped fuel a dividends bonanza.
Not true. Apart from business lobbyists, no one seriously disputes that CT cuts have helped fuel a dividends bonanza.
6/6 The Tory years have seen a massive increase in wealth inequality. And tax cuts are a big part of that story.
These are giveaways beyond most people's wildest dreams: the ER changes alone yield a £3.6m tax saving on a £20m capital gain.
@BBCRealityCheck - that's the reality!
These are giveaways beyond most people's wildest dreams: the ER changes alone yield a £3.6m tax saving on a £20m capital gain.
@BBCRealityCheck - that's the reality!
