Calls to Axe the 50% Top Rate Tax
Sunday, October 9, 2011 A number of conservative peers and businessmen are calling for the 50p top rate of income to be dropped. It is argued that the top rate of tax is not contributing much and could be doing more damage than good if it drives high earners to move out of the UK. The 50p rate of tax applies to individuals earning more than £150,000 per year.
Critics will argue that it is simply does not make sense to reduce the top rate of tax whilst everybody else is suffering under the current economic climate with rising prices and unemployment in the UK.
Current reports in the media indicate that George Osborne has no plans to drop the tax in the near term but appears willing to review this policy "when the time is right to do so". The tax collected from this new regime will not be known until January and so the debate is likely to resume early next year.
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