New analysis shows that raising Capital Gains Tax to Income Tax levels, the tax idea unifying the ‘soft left’, would lose billions. Something something Laffer Curve…
CGT is currently either 18% or 24%. Following numerous leftist think tanks’ repeated pleas Wes Streeting proposed raising it in line with Income Tax levels. Convicted fraudster Louise Haigh – who is highly influential in Team Burnham – argued over the weekend that CGT “should be brought closer to income tax rates.”
Investment platform IG says the change would cost the Treasury up to £7.8 billion per year as homeowners and investors delay or avoid asset sales. It points out raising the additional rate from 24% to 45% would cost £4.6 billion, raising the higher rate from 24% to 40% would cost £3.2 billion, and raising the basic rate from 18% to 20% would raise just £10 million…
Guido first pointed this out – it’s all based on HMRC’s own analysis – last month. It’s not a goer…
All the policy’s defenders go on about how CGT would have to be inflation-indexed which would eliminate the current unfairness with the tax: it’s a tax largely on inflationary gains. The reason they support remains because it is a massive tax grab – they do not foresee Brits holding fast until the next government comes in and scraps the policy…
Badenoch said at her speech on Monday morning: “We are absolutely ready to fight a general election. We say the results in Aberdeen South: 50% of the vote. Because we can unite the country… It’s about uniting the country, for God’s sake, behind a centre-right agenda.”