Nice try Mr. Weldon

Duncan tried to tell us that high January income tax figures showed that the 50p tax rate was raising revenue.

Now we\’ve got the OBR saying that there was indeed a surge of income tax.

From people paying themselves early to dodge the 50 p income tax rate.

The Office for Budget Responsibility revealed on Thursday that the Government received about £3bn in tax in 2009 through \”forestalling\” – as the rich brought forward salaries, dividends and other remuneration to avoid the 50p rate.

Note that for those under self-assessment, the final payment for the 2009/10 tax year would be in Jan 2011.

Exactly the month that Duncan used to tell us that the 50 p rate was raising money.

So we\’ll take that as, at best, a not proven as yet shall we?

3 thoughts on “Nice try Mr. Weldon”

  1. I realise this is probably nit picking, but I’d have thought a single month’s data was hardly sufficient to prove or disprove the Laffer Curve theory.

    Then again, can we honestly expect politicians to understand things like realistic samples and reliable data when fibbing is so much easier and carries no consequences?

  2. There should be a similar surge in July 2011 when the first payment on account for 2010/11 is made. that will be based on the (artificially) higher 2009/10 tax returns. Then in Jan 2012 the tax revenue will come in lower than expected as lots of self employed people will be due tax refunds (having paid more tax than their income in 2010/11 requires).

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