One woman put the entire mainstream media to shame with just three sentences about Labour’s manifesto [IMAGE]

Labour-tax-cuts-papers
Support us and go ad-free

On 16 May, the media went into total meltdown over the Labour Party’s tax plans to lower the threshold for the 45p rate of income tax. Many outlets began attacking the party for its supposed “tax raid on middle classes”. But one woman shut the hysteria down in a single post.

The post

Carol Wade from Worksop posted this on Facebook:

Wade highlights that the media is attacking Labour for its plans to tax those earning over £80,000. Under its plans, someone earning £80,000 to £100,000 could lose out on up to £1,000. But her point is that Conservative cuts have meant that more than three million ordinary working families will lose an average of £1,000 a year by 2020.

In 2015, the Conservatives tried to dramatically cut Tax Credits. They were forced to U-turn on that cut after a public outcry. But they are still cutting Universal Credit, which is replacing Tax Credits. And in 2015, the Resolution Foundation said those cuts mean more than three million families will lose an average of £1,000 a year by 2020. David Finch, the foundation’s Senior Economic Analyst, said at the time:

The welcome reversal of planned cuts to tax credits will bring short-term relief to millions of working families. But they could still see major losses later in the parliament.

By 2020, millions working families will lose an average of £1,000 as a result of cuts to Universal Credit, though the losses could rise to £3,000 for some families.

Read on...

Support us and go ad-free

But it’s even worse than that

More recent analysis by the Institute for Fiscal Studies (IFS) suggests the true figures are even worse. The thinktank says benefit freezes, cuts to Child Tax Credit, and the rollout of Universal Credit all mean “large losses” for low-income households. Shadow Chancellor John McDonnell said of the findings:

The Tories pose a clear threat to working people’s living standards. Under Tory proposals cuts to in-work support will leave working families with children an average of £2,500 a year worse off.

In-work benefits like Tax Credits and Universal Credit are an essential means of re-distributing income by paying money to families raising children and to working people on low incomes. But many argue that Tax Credits are only needed because wages are so low — the fault lying with businesses unwilling to pay their employees a decent wage.

Which policy is more unfair?

According to its manifesto on Funding Britain’s Future, Labour will be [pdf p6]:

Lowering the threshold for the 45p additional rate to £80k (Top 5%) and reintroducing the 50p rate on earnings above £123k.

(In fact, the most recent data from HMRC suggests that an income of over £70,000 a year, puts earners in the top 5%. But that’s a minor point.)

According to the Institute for Fiscal Studies, Labour’s proposal would affect 1.3 million people. The tax rises would see those earning £80,000 to £100,000 a year being taxed up to £1,000 extra. Those earning up to £123,000, meanwhile, would be taxed an extra £2,150 – losses that had previously been greatly exaggerated by the BBC.

Wade compares this extra money taken in tax from the top earners to the amount the Conservative Party is cutting from low-income working families and asks: which policy is more unfair?

Media complicity

So not only will more people be affected by the Universal Credit cuts (over three million vs 1.3 million), but these three million people would be among the most vulnerable in society. While the media lambasted Labour for ‘attacking’ the rich, it once again failed to hold the Conservatives to account. And it continues to do so now.

Update (1915 on 18 May 2017): Some readers have informed us that the message was originally posted by Lois Austin (tagged in Wade’s post). The Canary has been unable to verify that claim.

Get Involved

Register to vote in the 8 June general election.

– Discuss the key policy issues with family members, colleagues and neighbours. And organise! Join (and participate in the activities of) a union, an activist group, and/or a political party.

Read more from The Canary on the 2017 general election.

Read more from The Canary on BBC bias.

– Support and read independent news outlets that hold the powerful to account. Here are some we recommend. Please add more that you like in the comments:

The Canary, Media Diversified, Novara Media, Corporate Watch, Common Space, Media Lens, Bella Caledonia,Vox Political, Evolve Politics, Real Media, Reel News, STRIKE! magazine, The Bristol CableThe Meteor, Salford Star, The Ferret.

Featured image via CreativeCommons and ScreenGrab of The Daily Mail front page 17 May

Support us and go ad-free

We need your help to keep speaking the truth

Every story that you have come to us with; each injustice you have asked us to investigate; every campaign we have fought; each of your unheard voices we amplified; we do this for you. We are making a difference on your behalf.

Our fight is your fight. You’ve supported our collective struggle every time you gave us a like; and every time you shared our work across social media. Now we need you to support us with a monthly donation.

We have published nearly 2,000 articles and over 50 films in 2021. And we want to do this and more in 2022 but we don’t have enough money to go on at this pace. So, if you value our work and want us to continue then please join us and be part of The Canary family.

In return, you get:

* Advert free reading experience
* Quarterly group video call with the Editor-in-Chief
* Behind the scenes monthly e-newsletter
* 20% discount in our shop

Almost all of our spending goes to the people who make The Canary’s content. So your contribution directly supports our writers and enables us to continue to do what we do: speaking truth, powered by you. We have weathered many attempts to shut us down and silence our vital opposition to an increasingly fascist government and right-wing mainstream media.

With your help we can continue:

* Holding political and state power to account
* Advocating for the people the system marginalises
* Being a media outlet that upholds the highest standards
* Campaigning on the issues others won’t
* Putting your lives central to everything we do

We are a drop of truth in an ocean of deceit. But we can’t do this without your support. So please, can you help us continue the fight?

The Canary Support us

Comments are closed