50% tax rate to be scrapped?

[Zip106]

I seem to think I heard this news somewhere today but can't find any direct link.

Anyone else?

[Puggit]

Zip106 said:

I seem to think I heard this news somewhere today but can't find any direct link.

Anyone else?

It was the same conversation where Cameron said the fuel duty stabiliser was pie in the sky...

[Oilchange]

I think a lot will be said and claimed and invented right up until the deficit has been reduced and then we'll get a shocking tax break which will catch most people by surprise...

I'm hoping of course because this is what I would do.

[Engineer1]

I honestly can't see any government cutting the tax on high earners, it would be political suicide and ps off everyone who isn't a 50% tax payer or on the verge of becoming one.

[sidicks]

I think the goverment will have the sense to remove the 50% tax rate at some point, but it won't be within this parliament, and certainly not until the country's finances are on a much more stable footing.

Just need to hope that after making these brave decisions to tackle the deficit early, the conservatives will get the chance to enjoy the benefits of this approach with a majority election win next time around.

Sidicks

[EDLT]

When was the last time a tax was cut and not replaced with something else within a few years?

[jbi]

EDLT said:

When was the last time a tax was cut and not replaced with something else within a few years?

Sadly I fear you are right... it seems they simply can't help spending our money, regardless of party.

It's simple, cut spending, cut taxes... allow the private sector to generate more cash which in return will give more money without bumping up taxes and choking everyone.

[thinfourth2]

Scrapping 50% tax would be political sucide.

I say bring in a tax rate of 90% for those earning over £250k with more loopholes in it then a badly knitted sock. Brings in zero cash, costs high earners nothing, grabs headlines, gets moron votes.

[Dangerous2]

governments will never cut taxes long term, they will always increase long term because to take less money to have less power (in both collecting the taxes and because you have fewer resources to excercise your power). As long as you have people whose job it is to govern, this will happen. This is why we need to make being a politician a civic duty ala jury service and not elect 'professionals'

[Oilchange]

Wrong.

To cut the higher rate of income tax would inevitably lead to a larger income for the Government, its a proven tactic. Thatcher did it after gaining power and the tax take increased. The upper threshold was about 85% at that time and she reduced it to 40% I believe so the difference before and after was enormous.
Not only did the amount of tax taken from the rich increase but they paid more individually also.
ref: Laffer Curve
http://en.wikipedia.org/wiki/Laffer_curve

Edited by Oilchange on Tuesday 11th January 16:02

[Engineer1]

Science and proof, the voting public will see a scrapping of the 50% rate as the Tory's helping their rich friends, who cares if tax take goes up, the Tories will have played into Labour's hands.

[Spiritual_Beggar]

Engineer1 said:

Science and proof, the voting public will see a scrapping of the 50% rate as the Tory's helping their rich friends, who cares if tax take goes up, the Tories will have played into Labour's hands.

That would be the media's fault.

IMO, the media should be informing the public about the 'reality' of such plans/ ideas......but of course, that would make for better reading!


As Elliot Carver once said; "There's no news like bad news"

(P.s.: Anyone else been cathcing James Bond on TV recently )

[Oilchange]

After the last Governments behaviour toward the rich I think they haven't got a leg to stand on, especially now that one Labour MP on the take is in prison and a second is almost there. They can play that game but ultimately the public will see them for the fools they are. It didn't work in Crewe and Nantwich did it?

Champagne Socialists!

Engineer1 said:

Science and proof, the voting public will see a scrapping of the 50% rate as the Tory's helping their rich friends, who cares if tax take goes up, the Tories will have played into Labour's hands.