Sunday, 6 May 2018

The Brexit Tax: how much are you prepared to pay?




Nobody much now believes the biggest lie in British politics: that leaving the EU would produce an extra £350 million a week for the NHS. It is now clear that ANY arrangement that follows us leaving the EU will make us worse off - apart from a few of the hyper-rich non-elite who may be helped to avoid tax.

An assessment that Theresa May tried to keep secret shows that if we get a Norway-type deal of leaving the EU, but staying in the Single Market (the kind Nigel Farage used to favour but now considers insufficiently extreme) we will all be 2 per cent worse off. 

With a Canada-type free trade deal, we will be 5 per cent worse off, and if we go for the no-deal scenario favoured by the Brexit fanatics, which Theresa May is keen not to rule out, we will all be 8 per cent worse off. So instead of being paid, say, £30,000, you will get £27,600.

But it gets worse. Because we will all have less money, the government will get less from taxes to pay for the NHS and other public services. By 2033, the Norway model will leave a Black Hole in the public finances of £20bn or about £300 for every man, woman and child in the country; the shortfall for a Canada arrangement will be £55bn, or about £850 for every man, woman, and child in the country, while having no deal would cost about £80bn, or £1,230 for each of us.

Interestingly surveys on how much people are to pay for Brexit usually come up with the answer: £0.




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