The proposal by Conservatives to cut the 50p tax rate for high earners can only be described as obscene. While public services are slashed and benefits for the vulnerable are cut we now have the 'we're all in it together' government considering making the rich, richer. Quite unbelievable. At what point does a Liberal Democrat with an ounce of decency say, 'Enough is Enough' and quits the Party/Government. What is the point of a Party which has claims to be progressive being part of a government which allows this sort of blatant injustice which further divides society. If the goverment were trying to create the conditions for more social unrest this is exactly the sort of policy you would promote. Utterly bonkers.
The 50p rate applies to those earning £150,000 or more. Green Party policy would lower the threshold to earners over £100,000/year.
All a bit more complicated that this- the 50p rate was a political measure concerned with appearing to hit the rich, when, in reality, it has cost the Treasury money - best estimates are that it has resulted in a £3billion fall in revenue.
ReplyDeleteAnd in case you are wondering why this may be the case, 16 of the top 20 in the Sunday Times rich list are foreign. Put up the tax rate, they go and live where the weather is sunnier...
And as the top 1% of earners generate approximately a quarter of all tax revenue, keeping the rate high, or indeed lowering the threshold, are rather dubious suggestions.
You get different estimates depending on who is giving the information and what their agenda is. Her Majesty's Revenue and Customs reckon it will raise about £6Billion
ReplyDeletehttp://www.taxresearch.org.uk/Blog/2012/03/08/the-50p-tax-rate-will-raise-more-than-6-7-billion-according-to-hmrcs-data/
Ooh, the TUC say it's a good idea... I'm quite shocked that they think that :)
ReplyDeleteMaybe try http://www.bbc.co.uk/news/business-14810323 for a different view...
To be fair its HMRC's view. I wonder about the independence of the views of the 20 economists who are,
ReplyDelete"part of a campaign being promoted through PR firm Westbourne, which they say is funded by businesses concerned about the impact of the 50p rate"