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From: Hamsterwheel
Labour turkeys 🦃 Laffing for Christmas A fresh tax raid on the wealthy risks backfiring and losing the Government money, Tory analysis of Treasury data suggests. Internal government modelling indicates that the top rate of Capital Gains Tax (CGT) is already so high that further increases will lead to lower tax receipts. Figures presented to the Government before Labour’s first Budget in 2024 show that the Treasury assumed it would raise less and less money from investors, business owners and landlords through CGT as it rose. After a certain point, increases would lose the Exchequer money as the high rate puts people off selling assets such as shares, businesses and second homes. Tory analysis of the Treasury’s assumptions suggests this tipping point is when CGT is levied at 22pc. Rachel Reeves, the former chancellor, has already raised the top rate of the wealth tax from 20pc to 24pc. However, John Healey, her successor, is now facing pressure to increase it further. Sir Mel Stride, the shadow chancellor, said: “Labour raised CGT beyond the point at which the Treasury’s own analysis suggests revenue would be maximised, and yet a raft of Cabinet ministers want to go even further. “This is open war on the people who create jobs and growth in this country.”

Current Thread	Author	Time
Labour turkeys 🦃 Laffing for Christmas ...[more]	Hamsterwheel	08:44:46

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