Wednesday, September 07, 2011

Economists say 50% tax rate hurting UK, no bleep sherlock

Twenty high-profile economists have urged the government to drop the top 50p tax rate, which they say is doing "lasting damage" to the UK economy.

In a letter to the Financial Times, they say it should be axed "at the earliest opportunity" to boost growth.

Ministers say the 50p rate is temporary but their policy is to first increase the income tax threshold to £10,000.

Critics said cutting the rate at a time of cuts would be "monstrously unfair" and "phenomenally immoral".

The chancellor has asked HM Revenue and Customs to check whether the 50p rate, introduced as a temporary measure to tackle the deficit under Labour, is an effective means of raising tax revenue.