to wonder why Labour supporters think...

[TipTopCat]

that raising taxes will be the answer to all our problems?

However, the IFS has stated categorically that all that Labour wishes to do cannot be done by raising taxes.

Labour’s proposals would raise spending to its highest level since the mid-1980s and tax levels to record levels in peacetime, the thinktank said. But the party’s plans for tax hikes aimed at top earners and businesses may “not raise anything like” the £48.6bn claimed and its proposals could turn out to be economically damaging, it added.

Additionally, companies currently providing jobs in the UK may well leave it corporation tax is increased.

The 'brain drain' of the 1970s may well emerge too.

There is masses of evidence that increasing tax for high earners does not result in a bigger pot for the government. Reason? High earners stop working so hard, defer promotion, etc.

So why do Labour voters think that a high tax economy is the answer to everything?

Grumpyoldbag aptly named

Oh rubbish
Today all electioneering had been postponed out of RESPECT for the dead and injured

But companies don't exist in vacuum that can float from place to place. Companies consist of their - often highly trained - workforce. They can't just go in order to avoid a small amount of extra tax. The costs associated with that would completely overwhelm any tax savings. And where would they go? Yeah, some countries have lower corporation tax, but most countries with a skilled and accessible workforce and the infrastructure to support successful business also charge a sensible (I.e., not risibly low) corporation tax.

The Tories will be raising taxes too. They just can't get their story straight on whether to tell you before or after the election...

Because free money overrides rational thought and amplifies the vocal cords to shout, "gimme, Gimme, GIMME, GIMME"

A reasonable question and if all you can say in reply is f* off then that's Momentum for answer to any tough question in this election

Where do you suppose they'll go?

My convinced by the evidence that suggests putting money into paying more to relatively low-paid public sector workers stimulates the economy more because they're more likely to spend that money than to save it. So, the money you get from taxing richer people a bit more helps the economy grow stronger when it's in the pocket of a nurse or a person on disability benefits than it would if that richer person just put it in their ISA. From what I see in our economy at the moment, I think it's reasonable to predict that higher taxes and higher spending on public services and on benefits would make the economy stronger as a whole. That's why I support Labour's tax plans.

I believe that it's unlikely that significant numbers of rich people would move abroad if they were taxed more. Firstly, many places in Europe are taxed more than the UK and they have not seen a huge brain drain. Secondly, most people want to stay where their families and local ties are. Thirdly, even if some rich people move, in some cases their jobs will still be there even if they aren't. Fourthly (!), a good proportion of wealthy people think they should be taxed more.

I work in a highly mobile and international field and would not consider moving just because of being taxed more. In fact, I'd be very glad to pay much higher tax in this country. I think a lot of reasonably well off people probably feel the same.

Very well put nice, I totally agree.

Any tax brain drain will pale into insignificance compared to the Brexit brain drain that will follow the had Brexit we are currently heading for. Six of one, half a dozen of the other.

Agree with what nice said.

The Conservative ideology of low tax, low spend seems designed to create a society with a wealthy elite, privately-educated with private health insurance. The rest of us plebs will be stuck with whatever meagre services can be provided by low taxation and employed at whatever wage those at the top wish to pay us. I can see no other explanation for the current decimation of public services. Presumably they want to make education rubbish so we don't question what they're up to.

Also, even with Labour's proposed changes, corporation tax in this country would still be below most other G7 countries' rates.

Tories have near on trebled the national debt in a record short time, while cutting and cutting. Explain that to me - and why national debt is only a problem if Labour cause it.

Then I'll answer you OP

For balance, it's worth noting that the IFS also said that the Conservatives' manifesto was putting public services at risk and that they'd refused to acknowledge those risks (ie. they were pretending they could cut taxes without having to cut services). The IFS also said that the Conservatives' promises to reduce immigration would damage the economy.

The Tories' economic philosophy is predicated on tax-cuts and austerity stimulating the economy and thus making more money for everyone. We can see that this hasn't worked over the last few years and it didn't work when we tried it in the 1980s. Countries such as the US and Germany recovered better than us from the 2008 financial crash in part because they avoided instituting austerity programmes. This is why I think Labour's fiscal logic makes more sense.

As well, there's a big push internationally to cut cross country tax avoidance, so while some companies can avoid some tax, it's becoming harder and harder to do if you want to sell into a given market, or not force your entire staff overseas.

I wonder why the hard left thought companies where all about to leave the UK because of Brexit but they have changed their minds and are all going to stay here because they will be able to pay more tax.
FYI If Corbyn puts up corporation tax to 26% it would be higher than both Ireland's and Frances. So I wonder where companies would go to?

YABVU.
There is masses of evidence that Tory policies kill people every day. Just vote for the gas ovens and stop lying about what you really want.

The National Debt has massively increased under the Tories because you think that running the economy of a country is vaguely like running your own domestic budget.

Lib dems would raise taxes and the tories will be raising taxes as well

Non labour supporter here

exploded

After the election

The funny thing is they have said no higher taxes for the highest earners...but they havent mentioned anyone else...weird

Rufus better remind Michael Fallon of that. He hadn't read the memo yesterday!

Really exploded!!!

Fallon...mate....read the memo!!!

Thats should help

What the Tories tend to do is increase VAT. It's impossible to get out of paying it and it hits poor people equally hard, if not harder. They can then boast that they didn't increase income tax. Everyone's happy, especially rich people and those not clever enough to understand how taxation works.

Companies are often international. They can switch production back and forth much more than people realise.
If tax in France is lower, then of course it will be part of the calculation.

If Corbyn puts up corporation tax to 26% it would be higher than both Ireland's and Frances. So I wonder where companies would go to?

French corporation tax is 33%.