Business people are right – the 50p rate must go
- Published on Thursday, 01 March 2012 10:58
- Posted by Scott Buckler
Endorsing today’s letter in the Daily Telegraph calling for the abolition of the 50p income tax rate, a letter signed by 537 business people, Simon Walker, Director General of the Institute of Directors, said
“This letter is the voice of people who actually run businesses, create jobs and make sure that there are goods and services available to buy. These people know what works, and what damages the economy. They are clear that the 50p rate does real economic damage.
“At the same time, the 50p rate does nothing for the Exchequer. In the short term, it may raise some revenue, before many people have adjusted their behaviour. But in the longer term, it will reduce incentives to expand businesses, encourage people to put more effort into reducing their tax bills, and discourage highly-skilled foreigners from bringing their talents, and their taxable income, to the UK for a few years. The 50p rate will actually reduce the tax take from high-income people.”
“Scrapping the rate, and encouraging business, would increase the tax take and reduce the tax burden on lower-income people. If there was ever a win-win for the Chancellor, scrapping the 50p rate is it.”