Labour's proposed income tax rises for high-income individuals

Document type
Briefing
Author(s)
Adam, Stuart; Joyce, Robert; Xu, Xiaowei
Publisher
Institute for Fiscal Studies
Date of publication
20 November 2019
Series
IFS Briefing Note; BN265
Subject(s)
Poverty Alleviation Welfare Benefits and Financial Inclusion, Employment
Collection
Social welfare
Material type
Reports

Download (260KB )

The Labour Party plans to increase income tax for individuals with annual taxable incomes over £80,000. Under the current system, income tax is payable on incomes above the personal allowance of £12,500 a year. The 40% higher rate becomes payable at £50,000, and the 45% additional rate kicks in at £150,000. Labour would introduce a new 45% income tax rate starting at £80,000 a year, and a new 50% rate starting at £125,000, from 2020–21.

More from Social welfare collection

Related to Poverty Alleviation Welfare Benefits and Financial Inclusion

Public spending under Labour

This briefing note explains the trends in public spending since Labour came to office in 1997. Section 2 compares the level of public spending under Labour to date with historical levels and spending

Estimating the size and nature of responses to changes in income tax rates on top incomes in the UK: a panel analysis

This working paper uses panel data methods in order to assess changes in income tax rates

Optimal capital income taxation in a two sector economy

This paper extends the celebrated Chamley-Judd result of zero capital income tax and shows that the steady state optimal capital income tax is nonzero, in general. In particular, it finds that the optimal

State income tax reciprocity agreements and small businesses

Purpose - Small businesses play a vital role in job creation and economic growth, and previous studies have noted that higher state tax rates may reduce entrepreneurial activity, growth, and hiring.

More items related to this subject