Most people on over £100k already pay 60% Tax

Alistair Darling introduced a progressive reduction in personal allowance for incomes over £100k which the Tories did not abolish and Labour certainly won't. Because of the way incomes are distributed, this means that the vast majority of people with taxable incomes over £100k are paying a marginal tax rate of 60% - i.e. if you earn a further £2 you only take home 80p (ignoring NI).
So why all the fuss over the tiny proportion of earner over £150k who may pay 45% or 50% (or even 60% in the case of the greens)? How have they managed to keep this quiet?
Now, you may think higher earners should be squeezed until the pips squeak, but sure a founding principle of taxation is that it should be progressive. How can it be right that taxation rates rise and then fall with income?
Thanks Thomas
Reply to
Thomas

BeanSmart website is not affiliated with any of the manufacturers or service providers discussed here. All logos and trade names are the property of their respective owners.