Posted April 11, 201114 yr George Osborne: 50p tax rate could be scrapped by 2013 George Osborne is hoping to scrap the 50p top rate of tax in his Budget in 2013, on the back of evidence that new higher rate does not make money for the Exchequer. The Chancellor has insisted that the rate is only temporary and he wants to offer traditional Tory supporters tax cuts well before the next election. A review is about to begin into the how much the new rate – brought in by Labour but endorsed by the Coalition – brings in. But it is understood that 2013 has been pencilled in as the best-case scenario for the tax to be lowered. In his Budget last month Mr Osborne said that high personal tax rates “crush enterprise, undermine aspiration and often undermine tax revenues as people avoid them.” He would not be drawn on when he intends to bring the rate back down. After three years of straightened economic times and little to cheer Tory voters, Mr Osborne will, by 2013, be desperate to break free from the deficit reduction straight-jacket that has limited any moves they could make to cut taxes. Some economists and senior Tories are adamant that dropping the rate would raise more cash for Exchequer coffers. Lord Lawson, who as Conservative chancellor, in 1988 cut the rate to 40p, has said that the high rate is counter-productive. After Mr Osborne’s Budget announcement about the review the Chancellor said: “I hope it will be a signal that he will bring it down next year. The 50p rate does not being in any revenue at all.” Last night the Treasury insisted that their position had not changed and that any future moves on 50p tax would be determined by the new review and only announced in a future Budget Alistair Darling announced in his Budget two years ago that the rate was to rise to 50p for those earning more than £150,000 a year. The new rate came into force in April last year. It affected the 300,000 highest earners in the UK, out of the 29 million people who pay income tax. The aim was to raise an extra £2.4bn a year. But Mr Darling’s move, sanctioned by Gordon Brown, gave rise to accusations that Labour was targeting the rich as an electioneering device before the general election. Labour strategists hoped that David Cameron and Mr Osborne would have opposed the rise in the top rate – a rate that was an almost a sacred Thatcherite tax rate. But careful to avoid charges that the Tories had not changed in their long years in opposition, the party backed the rise. Traditional supporters were furious, but Mr Osborne had calculated that he could not fall into Labour’s trap. However, since he entered the Treasury as Chancellor, he has made clear that he sees the 50p rate as temporary and he will try and do everything to reverse it when the conditions allow – hence his very strong signal in the Budget. Labour meanwhile have themselves struggled with the issue in Opposition. In the early weeks of Ed Miliband’s leadership there was a split between Alan Johnson, the then shadow chancellor, and the Labour leader about the 50p rate. Mr Johnson indicated he would like to see a time when it could be reduced, but was slapped down by Mr Miliband who has said he will not reverse it. --------------------------------------------------------------------------------------------------------------------------------------------------------------------------- So, here we have it folks, this is what the wholesale slaughter of Public Services is going to eventually fund - a Tax cut for Toffs.... Typical, dirty, fu/cking Tory b/astards..... This is what they destroyed mining, manufacturing and stole North Sea oil revenues off of the Scottish people for in the 80s, and they're doing it again... Do I really need to repeat it.......? NEVER TRUST A TORY........
April 11, 201114 yr IF (and it's a very big if) it is accompanied by the introduction of Vince Cable's "mansion tax" then it might be acceptable. After all, the mansion tax would be a lot more difficult to avoid.
April 11, 201114 yr Author IF (and it's a very big if) it is accompanied by the introduction of Vince Cable's "mansion tax" then it might be acceptable. After all, the mansion tax would be a lot more difficult to avoid. And when was the last time anyone brought that up after Cable was effectively emasculated over the Murdoch affair.....?
April 11, 201114 yr and often undermine tax revenues as people avoid them But you are supposed to be fighting this - fight it. Make it impossible to avoid paying tax.
April 11, 201114 yr Author But you are supposed to be fighting this - fight it. Make it impossible to avoid paying tax. Exactly... I'm really getting sick of the excuses from the various Governments tbh... If tax havens are a problem - CLOSE THEM DOWN.... Hell, quite a lot of them are on BRITISH SOIL FFS..... (Caymans, Jersey, Guernsey.....). <_< Make Tax Avoidance illegal, start prosecuting c/unts like Philip Green....
April 11, 201114 yr And when was the last time anyone brought that up after Cable was effectively emasculated over the Murdoch affair.....? Last week when Cable himself raised the subject again.
April 11, 201114 yr Exactly... I'm really getting sick of the excuses from the various Governments tbh... If tax havens are a problem - CLOSE THEM DOWN.... Hell, quite a lot of them are on BRITISH SOIL FFS..... (Caymans, Jersey, Guernsey.....). <_< Make Tax Avoidance illegal, start prosecuting c/unts like Philip Green.... The City of London is a bigger tax haven than the Channel Islands and the Caymans.
April 12, 201114 yr Author The City of London is a bigger tax haven than the Channel Islands and the Caymans. That's true also... Which surely just adds to my point...
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