Interesting stuff, for we\’re normally told to listen when the IFS speaks:
The 50p rate of income tax is costing the Treasury up to £500 million a year as high earners shelter their money abroad, a leading think tank has warned.
The argument is that this rate is increasing the use of (entirely legal) tax mitigation strategies plus some people are buggering off.
Yes, I know, there are those who insist that we should just make it illegal for people to bugger off out of the tax system but we\’ve signed a number of international treaties that say we cannot do that.
But here we have it, at least some independent and non-politically partisan experts state that 50 p on income tax is over the peak of the Laffer Curve: even in this short term.
Not much point in having it then really, is there?