Latest news with #taxhikes
The Sun
6 hours ago
- Business
- The Sun
Labour-backing Gary Neville slams Rachel Reeves over crippling tax hikes on businesses
LABOUR-loving ex-footballer Gary Neville today tore into Rachel Reeves for hammering businesses with tax hikes. The ex-Manchester United ace, who campaigned and cast his vote for Sir Keir Starmer, admitted the Chancellor's national insurance hike on employers 'could have been held back'. 1 The businessman told Sky News: 'I honestly don't believe that, to be fair, companies and small businesses should be deterred from employing people. 'So, I think the National Insurance rise was one that I feel probably could have been held back, particularly in terms of the way in which the economy was.' Mr Neville said he backs Labour's minimum wage hike – but warned that tax raids on businesses were becoming a serious 'challenge'. Responding to the stinging rebuke, Tory MP Ben Obese-Jecty said: 'When even Gary Neville is critical of the National Insurance rises in the disastrous Labour budget, it's fair to say that Rachel Reeves has even lost the Labour changing room.' A Conservative insider added: 'Gary Neville is clearly discovering that if you play silly games, you win silly prizes.' Meanwhile, British business activity is forecast to shrink at its fastest pace since the 2020 pandemic. The Confederation of British Industry today revealed a 'wave of pessimism' has swept through industry since Labour took the reins. Economists warned the 'negative sentiment' shows no signs of easing, with the economy set to nosedive further over the next three months. The CBI's business barometer found bosses are still grappling with the fallout from the Chancellor's £25bn national insurance raid. Firms also remain wary of the ripple effects of global trade policies, even though the UK has dodged the worst of Donald Trump's tariffs. Alpesh Paleja, the CBI's deputy chief economist, said: 'Firms continue to face testing conditions, with expectations pointing to another quarter of falling activity across the economy. 'While not worsening, the persistently negative outlook underlines the fragility of demand conditions. 'Against this backdrop, businesses continue to cite headwinds from adjusting to higher employment costs, energy prices and continued uncertainty from a volatile global environment. 'With few signs of recovery on the horizon, firms are focused on managing costs and streamlining processes in what looks set to be a subdued second half of the year.'
Daily Mail
7 hours ago
- Business
- Daily Mail
A red card for the Chancellor? Ex-footballer Gary Neville blasts Rachel Reeves' tax hike on businesses
Gary Neville has condemned Labour's tax hikes for deterring firms from employing people. The ex-England and Manchester United footballer hit out at Chancellor Rachel Reeves for increasing employers' National Insurance contributions. Neville, who is now a business owner and TV pundit, claimed the tax hike announced by Ms Reeves at last year's Budget 'probably could have been held back'. The criticism will sting both Ms Reeves and Prime Minister Sir Keir Starmer, following Neville's staunch support for Labour at the general election. The former defender told Sky News: 'I honestly don't believe that, to be fair, companies and small businesses should be deterred from employing people. 'So, I think the National Insurance rise was one that I feel probably could have been held back, particularly in terms of the way in which the economy was.' Neville also warned about the impact of a double whammy for under-pressure businesses at the start of April. This is when both the National Insurance rise and Labour's increase in the minimum wage came into effect, both of which hiked costs for firms. Neville said: 'I don't think we can ever criticise the Government for increasing the minimum wage. 'I honestly believe that people, to be fair, should be paid more so I don't think that's something that you can be critical of. 'I do think that the National Insurance rise, though, was a challenge.' A recent report found nearly 50,000 UK companies are on the brink of collapse as rising wage costs, due to Budget measures, put small firms under 'immense strain'. The latest Begbies Traynor red flag alert found that firms in critical financial distress rose by more than a fifth (21.4 per cent) year-on-year to 49,309 in the second quarter. Consumer-facing industries saw some of the most 'extreme' rises in critical financial distress, with a 41.7 per cent surge among bars and restaurants, a 39 per cent leap for travel and tourism and 17.8 per cent jump for general retailers. Begbies warned that many independent pubs will not have the scale to withstand the pressures for another year without action. Ric Traynor, executive chairman of Begbies Traynor, said: 'The sharp rise in critical distress underscores just how tough the economic environment is for UK businesses and it's abundantly clear that tens of thousands of firms are struggling to stay afloat. 'Small and medium sized businesses across the UK are being put under immense strain by the recent increases to employer's NI as well as the increase to the national minimum wage. 'With limited financial headroom to absorb rising costs, many businesses are now reaching a tipping point.'
Bloomberg
22-07-2025
- Business
- Bloomberg
UK Borrows Billions More Than Expected as Debt Costs Surge
UK government borrowing came in worse than forecast in June, a setback for Chancellor of the Exchequer Rachel Reeves that will fan speculation over potential tax hikes to shore up the public finances. A surge in debt-interest payments sent the budget deficit to £20.7 billion ($27.9 billion), the Office for National Statistics said on Tuesday, well above the £17.5 billion economists surveyed by Bloomberg expected.
Times
21-07-2025
- Politics
- Times
The Talented Mr Mamdani
I know talent when I see it. Zohran Mamdani has it. He is handsome, charismatic and a smooth talker. He's got the perfect 'I've got your back' smile. But behind it? Reckless economic plans that will destroy working-class jobs and crush small businesses. Massive tax hikes that will drive enterprise businesses out. He wants to defund the police, which will no doubt increase crime in New York City, the capital of the world and the largest home to Jews outside Israel. Mamdani is slick — but not that slick. He foolishly thinks that by rubbing elbows with Jewish elected officials and business leaders last week, the rest of us are going to forget what he stands for. Not a chance. Beneath the charm and the polished exterior, Mamdani's lack of experience and radical socialist policies will be devastating for every New Yorker — and especially for the Jewish community. His entire identity is built on hatred of Israel and the movement to 'free Palestine … by any means necessary'. His record speaks for itself. He refuses to recognise Israel as a Jewish state; he falsely claims Israel is committing genocide, while he's quiet about countries like Syria that actually are. He vows to arrest Binyamin Netanyahu, the Israeli prime minister, for war crimes if he sets foot in New York City. • Meet Zohran Mamdani, the Bernie Sanders-inspired socialist who wants to run NYC He defends the use of the slogan 'globalise the intifada', which he must know is a blatant call for violence against Jews. He sponsored a bill that would fine New York synagogues and Jewish businesses $1 million or risk legal action for raising money for Zaka and Hatzalah, Israeli emergency response organisations helping people in disputed territories. In a resurfaced music video, he rapped 'My love to the Holy Land Five', referring to a group of convicted terrorists in the largest terror financing case in US history. One of the terrorists he praised, Mufid Abdulqader, sang at an Al Sakhra production in Oklahoma City in 1992: 'We won't fear a Jew. Oh, Hamas, respond to them with force. Death is right for Jews.' I could go on. Does he really think meeting a rabbi and congregants at a synagogue on the Upper West Side will erase all of that? It's as if he's saying, 'Look, Ma! I'm not an antisemite!' Not only is it meaningless, it's also pure performance. Here is who Mamdani truly is. He chants alongside Jew-haters at rallies for Within Our Lifetime, the antisemitic group led by Nerdeen Kiswani. Meanwhile, his mayoral campaign has been quietly funded by CAIR, an organisation with alleged ties to Hamas and an unindicted co-conspirator in the 2007 Holy Land Foundation Trial and a US specially designated global terrorist. Then there is his radical father, Mahmood Mamdani, who joined Columbia University in 1999 as a Herbert Lehman professor of government. In 2014, he published the book Good Muslim, Bad Muslim, in which he wrote: 'We need to recognise the suicide bomber, first and foremost, as a category of soldier.' When NBC's Kristen Welker interviewed Zohran Mamdani in June, he declined to denounce the phrase 'globalise the intifada'. Then, at an event hosted by the Partnership for New York City last week with 100 business leaders, he backpedalled slightly, saying he would 'discourage' the use of the slogan, but not the idea behind it. He reiterated that he did not personally use the statement and that to many 'the phrase means protest against the Israeli occupation of Gaza', but his father seems to know the intifada calls for violence against Jews. His father even apparently praised the violence that broke out between Israel and Palestinians in May 2021, which left hundreds dead, saying: 'We are witnessing something far more meaningful, the birth of the third intifada against settler colonialism.' Like his dad, Zohran Mamdani talks in double-speak. When questioned by business leaders about his well-known stance on defunding the police, he instead focused on his proposal to increase mental health services. But, unfortunately for him, the internet is for ever. In 2020 he tweeted: 'There is no negotiating with an institution this wicked & corrupt. Defund it. Dismantle it. End the cycle of violence.' In the first quarter of 2025, antisemitic incidents accounted for 62 per cent of all reported hate crimes in New York City. So, how exactly does Mamdani plan to protect us? Surely not with his Department of Community Safety, filled with social workers. Ironic that he just spent more than $33,000 on private security for himself. Michelle Goldberg of The New York Times wrote that 'plenty of Jews support Zohran Mamdani', noting a poll that showed him winning the support of 20 per cent of likely Jewish voters in the Democratic primary, putting him second after the 31 per cent of Andrew Cuomo, the former New York governor who has since announced an independent campaign for mayor. But only one in five registered voters turned out for the primary. About 1.35 million New Yorkers are not yet registered to vote. The race is hardly over. Mamdani can play down his anti-Israel, anti-capitalist, anti-western rhetoric all he wants. He can host shabbat dinners with far-left Jews who call Israel a genocidal state. But nothing he says or does will pull the wool over the eyes of most Jewish New Yorkers. October 7, 2023 marked our worst day in history since the Holocaust. These are the crimes against humanity that he celebrates every time he rallies alongside his keffiyeh-wearing, Hamas-supporting fans. Zohran Mamdani is a charlatan, a Trojan horse, a political fraud dangling promises of free buses and rent freezes while he knows he can't legally deliver. But the charm, the smile, the talent! Most Jews of New York know better. Mamdani will hear us loud and clear in the general mayoral election on November 4. Aliza Licht is an award-winning marketer, author, podcaster and, as of October 7, 2023, a Jewish activist.
Forbes
21-07-2025
- Business
- Forbes
3 Key Ways Omar Fateh's Proposed Tax Hikes Might Impact Minneapolitans
Minneapolis aerial with Downtown Minneapolis skyline in the background and Loring Park with Loring ... More Pond in the foreground, during early autumn. Omar Fateh has won the Democratic-Farmer-Labor Party nomination for Mayor of a large metropolitan city under a socialist platform. This victory follows his fellow socialist's, Zohran Mamdani, stunning win in New York City, signaling a change in the political landscape among Democratic strongholds in large metropolitan U.S. cities. While Fateh and Mamdani have differing objectives and goals for their uniquely different cities, one thing that they do have in common is their aim to raise tax revenues to pay for their agenda and these tax raises primarily deriving from high-earning tax payers via a progressive local option income tax. This article defines a local option income tax and outlines three key ways Fateh's proposed tax hikes for the high-income earners might impact Minneapolitans. Local Option Income Taxes Most taxpayers are familiar with the Federal income tax levied on individual taxpayers who work and perform services in the United States. Taxpayers in all but nine states also must pay taxes on their income at the state level. What is less common is local income taxes, often referred to as local option income taxes. Like the Federal and state income taxes levied, cities have the ability to levy taxes on the income of their residents. This tax means that taxpayers will have taxes deducted from their paychecks at an additional level for living and working in that city. However, according to the Institute on Taxation and Economic Policy, only 10 cities levy some form of local option income tax. Furthermore, the majority of these cities impose a flat tax rate on all income earned within that jurisdiction (only New York City has a progressive rate), meaning that the wealthy are taxed proportionally to everybody else. As local option income taxes are rarer, there is a paucity of direct evidence on the economic consequences of the proposed tax hikes. However, the rarity alone illuminates potential concerns and issues that might arise as local jurisdictions consider imposing one. 3 Key Considerations For How Fateh's Proposed Tax Hike Might Impact Minneapolitans (1) The High-Earning Taxpayers Will Pay More In Income Taxes Under Fateh's Tax Plans Fateh's vision, according to his campaign website, includes significant investments in making housing affordable and increasing the city-wide minimum wage. However, like Mamdani, Fateh must be financially responsible with these increases. As I previously discussed in a Forbes contributor piece, unlike the Federal government, most city and state governments cannot run at a deficit. This notion means that any significant increases in spending must be paid for. Fateh's campaign website specifically states that he aims to 'Lobby the State of Minnesota to allow the City of Minneapolis to institute a local option income tax to ensure the wealthy pay their fair share.' This tax hike would be similar to the 10 other cities levying a local option income tax. However, it would differ in one key dimension: the local option income tax would be progressive rather than flat. This difference means that lower-income taxpayers would pay hardly any (potentially no) additional taxes, whereas higher-income taxpayers would be taxed more significantly. (2) The Middle Class Might Also Face Tax Hikes Due To Low Income Inequality In Minneapolis A study by SmartAsset ranks income inequality among the largest 98 U.S. cities. This study examines the ratio of the income floor for the top 20% of earners to the income ceiling for the bottom 20% of earners. Most very large metropolitan cities appear toward the top of this list (i.e., New York, Los Angeles, Chicago, among others). Minneapolis appears in the very middle of the ranking at 47th, suggesting only moderate income inequality. The reason this is important is that imposing a progressive local option income tax relies on the notion that there is a large number of people with high-income levels who can afford a higher tax bill. However, if the income inequality is low in the city, then more taxpayers with moderate incomes may be subject to higher taxes. Fateh's campaign website is noticeably void of details on who will be impacted by this tax hike and how much they will face in incremental taxes. However, unlike Mamdani's proposed progressive income tax hike for New York City, the city of Minneapolis does not have nearly the same concentration of wealth, suggesting that those not considered ultra-wealthy may potentially see their income tax rates increase. (3) The High-Earning Minneapolitans May Just Move To Avoid Fateh's Proposed Tax Hikes As I outlined in a Forbes contributor piece about Mamdani, a key concern with imposing a local option income tax is that the high-income taxpayers have a unique ability to relocate to avoid paying taxes. What makes Fateh's situation in Minneapolis even more sensitive relative to Mamdani's in New York City is that Minneapolis is in a sprawling suburban area. In fact, the region is often referred to as the Twin Cities because the nearby city of St. Paul is also a large city in its own right. In the more digitalized workplace, where working from home some or all of the time has become normalized, the taxpayer's physical office location has become less important in determining the workplace for tax purposes. If high-income taxpayers were to relocate, they might be able to avoid paying the higher tax burdens. This potential relocation of high-income taxpayers calls into question the ultimate economics of such a tax hike. For instance, if the tax hike on only the higher-income taxpayers causes many of them to relocate, the city will not only not gain these tax revenues, but it will also lose out on other revenues it raises from things like sales taxes and property taxes. Potentially more pressing might be the message that Fateh sends to the many large corporations in Minneapolis. According to Twin Cities Business, Minnesota has 15 Fortune 500 companies, many of which are headquartered in Minneapolis (i.e., Target, UnitedHealth, U.S. Bancorp, among others). The executives of these companies are the ones who will ultimately bear among the largest burdens of a progressive local option income tax hike. These executives also control many important decisions related to the business's operations (even where the company is headquartered), potentially leading to even larger tax concerns for Minneapolis. As discussed by Forbes when highlighting Mamdani's tax plans, these progressive policies being proposed now in many jurisdictions have the potential to sink or swim a city. While much of the proposed tax hike by Fateh is yet to be known, one thing is clear: it is important that he carefully weighs the economics of the tax hike with the stated objectives of his platform to ensure that his plans result in positive outcomes.
