The Iconoclast FEB 2018

JEREMY CORBYN
SPEAKING AT
GLASTONBURY IN 2017
The Labour manifesto says that they will raise the
current corporation tax levels from 19% to 26%,
Raising corporation tax by that scale in such a
short time period will be severely damaging for
the UK economy. Rising corporation tax will increase
firms costs of production, thus leading to
rises in average costs- leading to a reduction in
total supplies as firms are less willing to supply
goods and services at that price, in that time period.
If we take this to a total scale, a rise in corporation
tax will, in the long run, lead to a fall in
GDP and- by the scale of the rise in tax- by an awful
lot.
Also, the tax is part of the cost of businesses investments;
investments in machinery, labour,
capital goods (such as computers) all lead to rises
in productivity some way or another. Increasing
taxes will reduce profits made on these investments,
thus leading to firms cutting back on investments,
leading to reductions in productivity,
therefore making the situation worse in essence.
I really don’t understand Labour’s new policies.
Tax increases are only going to hit Britain’s top
earners? Their manifesto will increase income tax
for 1.2 million people who earn £80,000 or more
a year, and add a new 50p tax on all earnings over
£123,000 on every £1 earned. If they claim to be
for the many, not the few, why tax the few and
leave the many out? Surely that just contradicts
their manifesto? Increasing taxes on a mere 1.2
million people when there are 29.3million taxpayers
in the UK, it doesn’t make sense to me.
Labours policies are overwhelmingly optimistic
and simply unrealistic to achieve effectively in the
time they say they can do so.
LABOUR SAW A LARGE
INCREASE IN SUPPORT DURING
THE 2017 ELECTION