High rate tax

[Jonone]

A lot of media attention today about the letter from 'leading economists' to the Financial Times recommending the abolition of the 50p in the ?1 rate of taxation for high earners.

The BBC website reported:

"The 20 signatories to the FT letter include two former members of the Bank of England's Monetary Policy Committee, DeAnne Julius and Sushil Wadhwani.
It is 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"

The interesting thing here is the access to the media bought through the PR firm. This isn't a news item that has just been picked-up, it's part of a planned strategy and calls into question much of what people accept as 'news'.

[David Johnson]

Yep if you have the dosh, you can always get your gripes heard

http://en.wikipedia.org/wiki/Cash-for-questions_affair

And in some cases MPs refuse to explain where the funding for their campaign comes from

http://www.guardian.co.uk/politics/2011 ... NETTXT3487

CHeers
D

[Von Boy]

if you set the income tax to high...50% it actually reverses the amount the tax office receives...

There was talk of a flat rate of 22% for everyone (years ago before Gordon destroyed this generations hopes) ... if you earn 10,000 you pay 2200 (lets forget for this discussion the figure you start paying tax) or if you earn 100,000 pay 22,000... its simple and a far fair way to tax it would also allow for 1000's of tax officials to be sacked and a far more efficient service in its place...!!
Then we have NI but lifes to short to discuss that expanding tax!

[Zorro]

The key to recovery is getting money in peoples pockets and getting them spending it in shops, not high taxation. This is why increasing VAT has not worked.

The abolition of the 50p in the pound tax will put more money in pockets which will then get spent, increasing the governments take through VAT and other taxes companies pay.

People need to spend to stimulate growth.