Tax rises proposed to pay for Covid debts

25 February 2021 (Last Updated February 25th, 2021 07:25)

25 February

Richard Murphy, a political economist, shared an article on the Labour leader Keir Starmer facing a backlash after stating that he would oppose any new tax on business in next week’s budget, as it was no time for tax rises on families and businesses.

Treasury officials are looking at increasing the tax on company profits from 19% to up to 25% as the government tries to recover some of the massive debts incurred during the Covid-19 crisis.

Although the rise is expected to be delayed until later in the parliament, Murphy opines that Labour is right in stating that there is no need for overall tax increases right now, and that redistribution to reduce inequalities is essential as Covid has created that divide.

Starmer’s comments prompted criticism from the party’s left, who stated that big corporations like Amazon have profited during the pandemic, while working people have struggled to survive.

Meanwhile, some US state governors are proposing higher income and capital-gains taxes on the states’ wealthiest residents, to fortify state budgets weakened by the coronavirus pandemic.

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