Shelagh Fogarty 1pm - 4pm
This Caller Perfectly Explains Why Corbyn's Maximum Wage Won't Work
10 January 2017, 11:24
Jeremy Corbyn has called for top income tax rate of 100%. But this caller brilliantly explains to James O'Brien why this simply won't work.
Earlier today, the Labour leader suggested that a 100% tax rate for top earners would create a more equal society.
But Eric said that the plan will take money from the rich and give it to nobody.
He told James O'Brien: "I don't understand how this helps anyone.
"This is why people are going against the usual politicians, because he thinks that hurting a big guy is going to help the little guy.
"This is robbing from the rich and giving to absolutely no one.
"He's not taking from the rich and giving to the poor. He's just taking money off the rich.
"Nobody's going to give 100% tax. Nobody's going to pay anyone above that. Who's going to pay an employee at any level more money if all of it is going to tax. If you get offered a payrise and all of it goes to the treasury... it's not going to work.
"No company will do it. They will put the money back into profit so the shareholders are happy."
James liked the idea in principle, but couldn't get past the fact that it sounded "bonkers".
Speaking about Corbyn's idea, James asked: "Can you tell a woman who has spent her life building up her business that there is a limit she can pay herself?
"I really don't know."