Boris Johnson’s vow to cut income tax for higher earners is “half-baked”, according to deVere Group CEO Nigel Green.
Despite being “normally in favour of reducing taxation”, Green has dubbed the Tory leader contender’s pledge as “half-baked at best”, adding that the proposed tax cut for higher earners is “ill-thought”.
“First, there would be a significant net cost for the Treasury; and second, it is unlikely to get through parliament – it’s therefore just Boris virtue signalling to his base.
“Someone who famously said ‘f**k business’ is arguably not the most economically savvy person, since it’s private sector activity that provides the growth that drives tax revenue for increased spending on the NHS, education, police and other public services. Unfortunately, Mr Johnson looks set to destroy the Tories’ greatest claim on the electorate: economic competence,” Green added.
Former foreign secretary Boris Johnson and frontrunner of the Tory leadership contest Boris Jonson has vowed to cut income tax for those earning more than £50,000, if he were to win the race to succeed Theresa May as Prime Minister.
Johnson said he would use the money currently set aside for a no-deal Brexit to raise the 40 per cent tax rate threshold to £80,000, cutting taxes for around 3 million higher earners, the Telegraph reported.
As an MP, the former foreign secretary earns £79,468, and the news source calculated that the proposal would cost £9.6bn per year.
Boris Johnson said: “We should be raising thresholds of income tax so that we help the huge numbers that have been captured in the higher rate by fiscal drag.”
Green added that the pound will be delivered “another bloody nose” should Boris Johnson become the next Prime Minister, affirming that “an already weak pound” would fall further due to Johnson’s positive approach to a no-deal Brexit.
“The significant drop in the value of the pound has contributed to reducing people’s purchasing power and a drop in UK living standards. Weaker sterling means imports are more expensive, with rising prices being passed on to consumers.”
Green concluded by acknowledging that there are “legitimate and justified reasons to shake-up taxation”, but Johnson’s “plan is not really a plan at all”.
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