Anthony Hilton: Ed Miliband’s proposal for 10p tax band is alarming
Your support helps us to tell the story
From reproductive rights to climate change to Big Tech, The Independent is on the ground when the story is developing. Whether it's investigating the financials of Elon Musk's pro-Trump PAC or producing our latest documentary, 'The A Word', which shines a light on the American women fighting for reproductive rights, we know how important it is to parse out the facts from the messaging.
At such a critical moment in US history, we need reporters on the ground. Your donation allows us to keep sending journalists to speak to both sides of the story.
The Independent is trusted by Americans across the entire political spectrum. And unlike many other quality news outlets, we choose not to lock Americans out of our reporting and analysis with paywalls. We believe quality journalism should be available to everyone, paid for by those who can afford it.
Your support makes all the difference.Doing some homework for a radio phone-in on Ed Miliband's proposal for a 10p tax band on Thursday, I was shocked at just how high the mansion tax would have to be to pay for it.
There are only about 70,000 houses worth more than £2m and about 25 million taxpayers looking for a share. So supposing the 10p tax band covered the first £1,000 of taxable income it would cost about £2.5bn to give everyone £100 a year. Not that many would actually get that, because among the lower paid it might well trigger an offsetting claw back of state benefits.
But raising the £2.5bn from mansion owners to finance even that paltry change would mean those with houses worth £2m or more would each need to find £35,000 a year each.
Mr Miliband got his headlines just as elections loom, but the idea needs a lot more thought. There are better ways to help the lower paid and tax the wealthy.
Join our commenting forum
Join thought-provoking conversations, follow other Independent readers and see their replies
Comments