UKIP claim to stand for working people, but in truth they are more Tory than the Tories. Their tax plans are great for millionaires and those at the top, but not so much for everyday hardworking people.
Here’s two ways their tax policies help the privileged few at the top (even more than the Tories…)
1) UKIP want another tax cut for millionaires
UKIP have promised millionaires that they will remove the 45p rate so 40p becomes the higher rate. Cutting the higher rate would give a tax cut of more than £100,000 to 16,000 millionaires.
(David Cameron gave the top one per cent of earners a £3billion tax break by cutting the top rate from 50p to 45p and have repeatedly refused to rule out a further tax cuts for millionaires.)
2) UKIP have supported a flat tax
UKIP want to cut taxes for the wealthiest, while raising taxes for you and your family. They want a flat rate of income tax of 31 per cent, so millionaires would pay the same rate of tax as working families.
This would amount to an increase in income taxes for the 24 million taxpayers who are basic rate payers whilst at the same time offering a huge tax cut to the very richest. Someone earning £30,000 would see their income tax increase by £2,200 at the same time as a person earning a million pounds a year would see a tax cut of over £120,000.
(Tories have supported a flat tax too. George Osborne called it “a very exciting idea” and Tory leadership contender Boris Johnson said a flat tax could “work brilliantly”.)
Labour has a different approach to the Tories and their UKIP cousins. We will:
Introduce a new 10p starting rate of tax to help 24 million people on low and middle incomes
Reverse David Cameron’s £3 billion tax break for the top one per cent of earners and tax houses worth over £2 million
In Europe, tackle tax avoidance with greater transparency so we can see who has paid what tax