Government could impose 70% tax rate on Britain’s rich
December 3, 2009
In a move to curb the government’s increasing debt crisis officials at the Treasury are calling on the Chancellor of the Exchequer, Alistair Darling to increase the tax rate on Britain’s highest earners to 70 percent. Some Labour MPs are also supporting the move as they believe it will show that the Tories are trying to defend Britain’s privileged by opposing Labour’s tax initiatives.
However, critics of such a heavy tax on the country’s rich have said that the move would hamper any chances of the Britain recovering from the recession. Susie Squire, spokeswoman for the TaxPayer’s Alliance campaign group pointed out that a 70 percent tax on the rich was simply a way of the government scoring points off the Conservatives and would discourage both those with ambition and much needed investment in the country.
Although Gordon Brown has refused to be drawn on the issue of whether or not Labour intends to increase the levels of inheritance tax, it is expected by many that Labour will shelve plans to raise the threshold from £325,000 to £350,000. This will be a way of targeting the Tory pledge to raise the threshold to £1 million.
Other areas of tax where the government is thought to be considering increases include making more people pay the 50p income tax rate currently set for people who earn more that £150,000 per year. Capital Gains Tax is also expected to rise and there is also expected to be a rise in the National Insurance payments made by those in the top tax brackets.
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