Top tax rates

Well, yes and no.

LABOUR’S new 50% tax on high earners will leave Britain with the highest income-tax rates in the G8, just a year after the UK had the second lowest in the influential grouping.

It will have the joint highest personal tax alongside Japan among the world’s leading economies.

Marginal tax rates are important, yes. But average tax rates are even more so.

When you look at the personal allowance, the interaction of national insurance and income taxation and the positioning of that upper band, then the UK\’s taxes look rather higher than a comparison of just marginal rates would lead you to think.

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