Labour has promised to tax income from wealth at the same level as income from work in its manifesto launched today. This has been a key demand of Tax Justice UK.
Taxing income from wealth at the same level as income from work would raise £14 billion a year according to the party’s costings. Labour plan to do this by taxing capital gains and dividends at the same rate as income tax.
We’ve been campaigning hard with Oxfam and the Institute of Public Policy Research for this change and it was a key element of our manifesto for tax equality. A recent opinion poll we commissioned with YouGov found that almost 70% of the public backed the measure.
The manifesto also promises a clamp down on avoidance and evasion whilst committing to review of the bloated system of tax reliefs, an issue we highlighted in our Inheritance Tax report last summer. It also reiterates the party’s commitment to reforming how global companies are taxed.
However, Labour has pulled its punches in other areas. The party has promised to change some of the rates on inheritance tax and council tax, but it has failed to engage with the fundamental reform that is needed to bring these taxes into the 21st century.
Have a look at our analysis of tax pledges from the Conservatives, Lib Dems and the Greens.