Alan Sugar has been trying to land a political punch on Jeremy Corbyn for a while. Last week, Sugar got confused while trying to bash the Labour leader and ended up promoting a socialist approach.
Face to palm
But the Apprentice host put his foot in it again, with a political attack that misunderstands how tax works:
you are right and that is ok. but a person who earns over £100k under @jeremycorbyn might end up with just 30K i.e. 70% tax . No incentive to work or prosper, no future managers no future company successes. = no employment of others https://t.co/GIk4OaQ3rE
— Lord Sugar (@Lord_Sugar) April 22, 2019
People quickly pointed out how income tax actually works:
To be fair, @Lord_Sugar’s stupidity does give us an opportunity to explain how tax really works. If the top rate of tax was 70%, it doesn’t mean that people pay 70p in the pound on their whole income. They only pay 70% on the amount over the top rate (currently £150k). Get it? https://t.co/BI8VT2KwiY
— Ben Sellers (@MrBenSellers) April 22, 2019
Labour’s real tax plans
Labour would introduce a tax rate of 45% for those earning above £80,000. And the top rate would be 50% for people earning more than £125,000 annually. So for example, on top of the tax paid on earnings below £125,000, Labour’s top rate would equate to £37,500 for somebody on £200,000. Because that is 50% of the money they’ve earned that is above £125,000.
These changes would only impact the richest in the UK. In fact, Labour has exempted 95% of the public from any tax increases.
“Feel free to charge him whatever you like”
On social media, many others simply laughed at Sugar:
Dear @HMRCgovuk amazingly, it appears @Lord_Sugar hasn't got a clue what the tax rates are or how tax is calculated. Feel free to charge him whatever you like, he'll never know. https://t.co/QcGaHSlrqR
— Matt Thomas (@Trickyjabs) April 23, 2019
One of these must explain Alan's inability to grasp marginal tax rates: he is catastrophically dim, a liar, or about to realise his accountant has been embezzling from him for years. Which is it? https://t.co/lXYumsiNuK
— James B (@piercepenniless) April 22, 2019
“Utter shambles”
A number of onlookers couldn’t believe that the billionaire was an adviser to Labour, and still sits in the House of Lords:
A former Labour lord who ‘advised’ them on business doesn’t know what the marginal tax rate is.
Utter shambles. https://t.co/M20nfShKES
— Aaron Bastani (@AaronBastani) April 22, 2019
I can only assume the sum total of Alan Sugar’s “tax advice” to New Labour was that “manufacturers of shit stereos and word processors should pay less tax”.
— EL4C #WeAreCollective (@EL4JC) April 22, 2019
It’s often argued we should have more rich businessmen in politics because they really get how the economy works. Here’s one of the most famous rich businessmen in Britain who doesn’t understand how income tax works. https://t.co/KxEtyz8wnJ
— Owen Jones (@owenjonesjourno) April 22, 2019
One coffee, no sugar please
Others suggested that the post revealed Sugar’s motives:
https://twitter.com/FreddieBailey96/status/1120409861328650241
In other news, Sugar has pledged again to leave the UK if Corbyn becomes prime minister. Along with Labour’s modest tax increases that only impact the top 5%, this could make quite a good campaign leaflet for the opposition party.
Featured image via YouTube – Good Morning Britain / YouTube – Sky News
