What do Corbyn's tax plans look like

Jeremy Corbyn is the new leader of the Labour party and his 'Corbynomics', as it has been dubbed, is at the heart of a plan to make the party one of 'economic credibility and economic justice'.

In short, Corbynomics is a Robin Hood-style of economics; taking from the rich and giving to the poor.

Its main tenets focus on a clamp down on tax avoidance (which isn't illegal), which Corbyn believes will bring in £20 billion a year and on tax evasion (which is illegal) to bring in a further £80 billion. Corbyn also wants HM Revenue & Customs (HMRC) to round up another £20 billion in unpaid tax debt.

That's £120 billion in total, not a bad start.

But he also wants to squeeze the rich harder, by increasing the top rate of income tax paid on earnings of £150,000 or more to 50% from 45% (if you recall the Tories reduced this rate that the previous Labour government had imposed).

And if you're a middle-class higher rate taxpayer, don't think you'll escape. Corbyn wants you to pay an extra 7% in national insurance, to pay for the scrapping of university tuition fees.

If you own a rental property then be warned, Corbyn wants to come after you too. His policies around renting range from a rent control cap to a 'right to buy' scheme for privately rented tenants, which would – you guessed it – give tenants renting in the private sector the right to purchase the property they reside in whether the owner wants to sell it or not.
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Won't work

So, how feasible are all these plans? Richard Murphy, a tax campaigner and author of the Corbynomics plan doesn't actually seem to think it can work, despite coming up with it.

Murphy has suggested that of the £120 billion that Corbyn thinks can be collected by a clampdown on tax evasion and avoidance, just £20 billion can be.

This admission was spotted by Jolyon Maugham QC (a former adviser to Ed Miliband on tackling tax avoidance), who has pointed out that Corbyn's Labour manifesto does not point out that only one sixth of the £120 billion can actually be collected, instead focusing on the £2,000 it would give to every adult and child in the country.

This plan hasn't stood up to scrutiny just a week into Corbyn's leadership and casts a shadow of his claims for Labour to become a part of 'economic credibility'.

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