Wendy Alexander attacked the SNP’s consultation document on local income tax as nothing more than a Scottish Jobs Tax.
The Labour leader at Holyrood said: “It will make Scots workers the highest taxed in the UK. This Scottish Jobs tax will hit the pay packets of every hardworking Scot. There is nothing fair about the super rich getting off Scot free. And nothing just about making hardworking Scots pay at least 15 per cent more in income tax than the rest of the UK.
“It will also inflate house prices and make it even harder for first time buyers to get on the property ladder.
“The 3p rate will cover only half the amount services currently provided by local authorities. To maintain current services the 3p cap will have to come off”
Speaking to the Scotsman newspaper Ms. Alexander said:
“Local Income Tax is a gift to the super rich”, because it did not tax unearned income. This means that those with large share interests will benefit.
Nationalist Finance Secretary ,Yesterday admitted that he had got his initial sums wrong by admitting that there was a £280 million blackhole in the cash raised from Council Tax to the revenues earned from a Local Income Tax. Only 10 months ago the SNP were adamant that they had not got their sums wrong and that services would not be affected.
This could not be further from the truth!
In SNP/Liberal Democrat Aberdeen we now have the prospects of Pensioners losing their home helps ,teachers losing their jobs and leisure facilities being closed at a rate not seen for 20 years. This is just the initial problems created by the FREEZING of council tax rather than the actual scrapping of the tax.
The SNP also claimed that 80% of households will be better off, this is a claim which senior economists have also rebutted. Economists found that single people who earn £35000 would be worse off and couples who earn £49000 would be worse off, this is way off earlier claims that only those who earned £70000 plus would be affected. This would have a massive impact upon the working and middle class families in Grangemouth, for example, this would mean that a Nurse and a Teacher, living together, would pay more.
This unwelcome tax has also massive repercussions for the young of Falkirk. Many young people already have massive financial burdens to deal with, mainly gathered from student debt and trying to get on the housing ladder. This would mean they will have to pay a greater amount in LIT.
The Local Income Tax has already been attacked by the Union Amicus aswell. Matt Smith, the Scottish secretary of the trade union Unison, said ministers would either have to set the new tax at 6.5p in the pound, not 3p, to generate the same amount of money as the council tax, or they would have to be prepared for cuts in services.
He said: “The introduction of a further tax on wages will either make many families worse off, or lead to cuts in public services. The government can’t have it both ways”.