Osborne favors ending 50 percent UK tax rate
Chancellor George Osborne has said he is in favor of eliminating Britain’s top tax rate, at 50 percent, because it does not make much money for Treasury, and because it tends to send top businessmen and entrepreneurs out of Britain to avoid paying high taxes rather than their staying to create more jobs in the country.
Conservatives in the government are expected to welcome the effort to eliminate the 50 percent tax tier but Liberal Democrats, whose priority is to cut taxes for the poor, are likely to object to the plan.
Mr. Osborne called the tax “too high and too uncompetitive” in a radio interview over the weekend.
He also justified the cut by reminding those who would question whether or not those better off are making a fair contribution to the economy that the capital gains tax has been increased, that a permanent bank tax has been introduced in Britain for the first time in history, and by saying that he is going after those who attempt to avoid paying their taxes.
Liberal Democrat Business Secretary Vince Cable said in response to the propose by Mr. Osborne that if the 50 percent tax rate is cut, another levy on wealthier British citizens must be substituted, suggesting some sort of “mansion tax” that would see those owning the highest-valued properties paying more.
HM Revenue and Customs are said to be looking at how cutting out the top tax rate would affect revenues, with their conclusions not due until next spring.
Category: Tax News
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