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Labor relies “wealth tax” on the “very best people” to pay for a coronavirus crisis

Labor relies ‘wealth tax’ on the ‘very best people’ to pay for coronavirus crisis if the UK economy does not recover, as shadow chancellor Anneliese Dodds says people with ‘broadest shoulders’ should be targeted

  • Anneliese Dodds said that if tax increases are needed, they are only intended for ‘best off’ people
  • Shadow Chancellor said people with “widest shoulders” should contribute more
  • But she said she hoped economic growth would be enough to pay for the crisis
  • Tories immediately accused Labor of plotting “tax bill on ordinary families”

Labor has urged the government to impose a “wealth tax” on the “very best people” to pay the Corona virus crisis if the British economy does not recover.

Shadow Chancellor Anneliese Dodds said economic growth is the “best way” to pay the cost of the outbreak.

But she said that if that didn’t happen, “those with the broadest shoulders should contribute more.”

The comments, which came out this week for Chancellor Rishi Sunak’s mini-budget, prompted the Tories to accuse Labor of advocating a “tax attack on ordinary families” targeting homes and savings.

Shadow Chancellor Anneliese Dodds, pictured on the BBC's Andrew Marr Show this morning, said that if tax increases are needed, they should target the 'very best people'

Shadow Chancellor Anneliese Dodds, pictured on the BBC’s Andrew Marr Show this morning, said that if tax increases are needed, they should target the ‘very best people’

Chancellor Rishi Sunak, pictured May 29 at 10 Downing Street, will outline his plans for the UK economy this week in a mini budget

Chancellor Rishi Sunak, pictured May 29 at 10 Downing Street, will outline his plans for the UK economy this week in a mini budget

Chancellor Rishi Sunak, pictured May 29 at 10 Downing Street, will outline his plans for the UK economy this week in a mini budget

The UK is likely to face the economic consequences of the deadly outbreak in the coming years after the government spent billions of pounds to keep businesses and workers afloat.

Ministers hope for a ‘V-shaped’ economic recovery in which the nation will quickly rebound from the damage done since February.

But Ms. Dodds suggested that if growth stagnates and the government has to look elsewhere to pay for the crisis, ministers should focus on asking the wealthiest in society to pay more taxes.

She told the BBC’s Andrew Marr Show: “The best way to deal with the costs of this crisis is to ensure that our economy grows.

“If we do that, it will affect the value of the debt as long as interest rates remain low.

“I think it is very important that we recognize that, because that will provide the context for tax decisions.

“I believe that if we have to see increased taxation, we shouldn’t see it coming from those low and middle income people.

Instead, we need to focus on the very best people. We have seen an increase in income and wealth inequality in recent years and I think those with the broadest shoulders should contribute more if that contribution is needed.

“That is only necessary if we do not grow out of this crisis.”

Ms. Dodds would not be addressed exactly how such a “wealth tax” could work, but she said ministers should explore different mechanisms to generate money.

“I would really encourage the government to address that rather than look at tax increases that would affect everyone equally,” she said.

“I don’t think that would be fair. Actually, most poll data suggest that the British public does not think that is fair either.

“They think those who can afford it should contribute more.”

Conservative Party co-chair Amanda Milling said Labor should “get clean” about proposals for “painful new taxes on houses and savings.”

“This tax attack on ordinary families is the same disastrous economic policy that Jeremy Corbyn proposed in the last election,” she said.

“Labor’s tax hikes would hit millions of families, damage growth, and undermine our recovery from Coronavirus.”

The Minister of Finance is expected to propose to Mr Sunak’s mini-budget this week a series of measures designed to kickstart the UK economy as it recovers from a coronavirus disruption.

However, ministers have refused to base themselves on what exactly could be announced.

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