This article discusses the UK Labour Party’s potential plan to increase inheritance tax to ‘redistribute’ wealth, as shown by a leaked recording of a shadow minister, Darren Jones. The party’s consideration has faced a lot of criticism from the Conservative Party, who claim it will increase taxes on family homes and stop economic growth.
A leaked recording shows the Labor Party saying it would consider an inheritance raid to redistribute wealth if it wins the election. A shadow chief secretary to the Treasury, Darren Jones, believes inheritance tax can mark “inter-generational inequality”. Currently, inheritance tax is charged at 40% on estates above £325,000, generating £9.7 billion once a year.
The party has come under fire from the Conservatives for its plans, which say it will tax family homes and impede economic growth. Laura Trott, Chief Secretary to the Treasury, summoned Labour to plan new taxes, including on family homes, which are the cornerstone of financial security for many families.
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“It’s not a silver bullet, but I think it’s probably where the political consensus is going to have to be. You could say that on inheritance tax, you need to think of the inheritance tax as a way to redistribute money.”
Labour refuses plans to raise taxes, stating their priority is economic growth and helping working people. They claim that their projects have full cost savings along with closing tax loopholes. The party has consistently refused to rule out increases to inheritance tax, capital gains tax, or council tax while promising not to raise income tax, VAT, or National Insurance.
The issue has become a key battle line in the election campaign, with the Conservatives warning of tax rises under Labour. The latest poll shows Labor has a 19-point lead over all parties, representing an overwhelming majority in the Commons. The debate focuses on differing approaches to taxation and economic growth, with Labour focusing on wealth redistribution and the Conservatives laying stress on the importance of low taxes for economic prosperity.
By Yahoo news
