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?
- posted 4 years ago