50p tax on rich may be temporary, Labour ministers hint

amcluesent

"Senior ministers have hinted that the 50p top rate of income may only be temporary as they fend off accusations of the death of New Labour.

Gordon Brown and senior members of his Cabinet moved to resuscitate the New Labour legacy today by insisting the Budget announcement of a 50p top rate of tax - the highest level for 30 years - was not a political or ideological gesture."


Another New Labour farce in the making:mad:. Has 'Bottler' Brown, after bottling the election, now not got the bottle to follow through with the politics of envy, driven by his class hatred of 'them toffs' up at the 'big hoose'?

ManAtHome

Interesting ploy - shafting your future 'employers' before leaving office...

1984ReturnsForReal_2

ManAtHome wrote: »

Interesting ploy - shafting your future 'employers' before leaving office...

You wait. You aint seen nothing...

michaels

Yes - won't be 50% for long - if Labour were go get back in it would soon be 60..83...98

Graham_Devon

Another U-turn on the cards?

1984ReturnsForReal_2

Graham_Devon wrote: »

Another U-turn on the cards?

Nope.

There going for the popular vote.

JP45

amcluesent wrote: »

"Senior ministers have hinted that the 50p top rate of income may only be temporary as they fend off accusations of the death of New Labour.

That's odd. I didn't get the impression from yesterday's budget speech that this was merely a temporary measure.

But perhaps the government is facing up to the awkward realisation that the new 50% tax, though good for generating headlines, is unlikely to yield anything like the £7bn suggested and that it might even prove counterproductive.

As the IFS pointed out earlier today:

The IFS also cast doubt on the Treasury's belief that it would raise an extra £7bn per year by taxing the rich, especially those earning over £150,000 per year.

It said there was tremendous uncertainty about how much the new 50% tax rate would generate, adding that it could raise no money at all if the rich changed their behaviour.

And it warned if some rich people chose to leave the country and spend less in the UK, that would also lower tax receipts in other areas, such as VAT receipts, perhaps by as much as £1.5bn.

Eyesparky

It is worth noting that the top rate of income related tax including National Insurance will be 51.5% after the NI increases with the marginal rate increase being higher when the loss of personal allowances are factored in.

Rochdale_Pioneers

Brown won't get to decide on its longevity - more likely Cameron will.

1984ReturnsForReal_2

Eyesparky wrote: »

It is worth noting that the top rate of income related tax including National Insurance will be 51.5% after the NI increases with the marginal rate increase being higher when the loss of personal allowances are factored in.

On what salary £109,387

Its relative to salary, the higher the salary the closer to 50% BUT only for money over £100k.

mewbie_2

They can see this back firing. The old poster campaign for Labour's Tax Bombshell will be being dusted off. Even the dimmest of dims might think "if they are going to do this BEFORE an election what are they planning to do afterwards?"

btw as an aside. I can't fully express my thoughts on reading what a family of non working claimants on roughly £600 a week had to say in the "Indie" today. "It's good that the rich are having to pay more".