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Hmm, yes, well

The 45p highest income tax rate might also go.

This will be Trussonomics on steroids, to be passed by a party that knows it will not be required to manage government budgets with these cuts in place whilst giving itself all the fun of watching Labour squirm as it either aims to do so (most likely, right now) or has to say why it will, after all, have to increase taxes on those best able to pay so soon after the Tories have said they will cut them.

Entirely and wholly unlike Brown, G’s, idea of the 50 p rate to take effect after the next election then. That one that Ritchie spent so many months defending.

8 thoughts on “Hmm, yes, well”

  1. I’m sure Labor would love to have an excuse to increase taxes. In fact I’m sure they’ll increase them anyway.

  2. They can increase the tax rates, sure, but I doubt they can increase taxes.
    We are now so far up the backside of the Laffer Curve we can almost see daylight.

  3. “Brown, G’s, idea of the 50 p rate to take effect after the next election then”

    In Captain Pendantic mode, I should point out that the 50% tax rate was brought in by Alistair Darling and came into effect on 6th April 2010. The 2010 election was held on 6th May. So for all but 1 month of Labour’s 13 years in office, 40% was fine.

  4. I’d rather they abolished the 60% tax band. It seems to get zero political attention, despite it being a clear “push factor” driving relatively high earners like doctors out of the country.

  5. @Andrew M

    Problem is, there’s little sympathy for anyone earning over £100k.

    So be it.

    Most of my clients are owner/managers of small-medium sized businesses. The more successful ones could be on £150k-£200k. But none of them are. There’s something about that £100k-£125k bracket that repels them. So £100k is the most they take and it’s £50k or so into the pension. Psychologically it seems to be about £250k plus before they shrug and just accept the hit.
    Lower down I have clients who stop at £50k because they have children and are receiving child benefit. So it’s £50k income and £10k-£15k into the pension.
    Whole system is f’d.

  6. I think the fakeTories entered Liam Byrne mode months ago. They are just not being so literate as to write a note…

  7. Liz Truss for Growth

    I wonder if the £85,000 VAT threshold for sole traders which hasn’t changed in 6 years afaik is making a small difference to tax receipts and the labour force participation rate.
    I mean if you can earn £80k or just over in 7 months, then you’ll consider doing nothing for the next 5. Previously you might have earned your £80k in 9 months and took 3 months off. If the ONS Labour Force Survey dude calls on you during a non-working month, you’re not looking for work, not working so not counted in the employment rate.
    Increase this to 125,400 and let everyone keep the personal allowance and watch the economy grow.

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