The real 50p tax divide |

Monday 12th September 2011 | 13:05

The real 50p tax divide

YouGov have once again released polling showing overwhelming support for retaining the 50p tax rate on earnings above £150,000. Unlike previous polls, the way the question was phrased pointed out that if the rate were abolished, the income would still be taxed at 40% - perhaps explain the slight drop in support for retention, particularly among Conservatives. However, even Tory supporters are evenly split on the issue, with 46% in favour of retention to 43% against.

The most interesting ideological split on the 50p rate, however, comes around the question as to whether it actually raises any money; the answer to which remains fairly elusive. Voters are evenly split on whether this even matters: 45% say it should be scrapped if it’s not a revenue raiser, while 42% think that even if it doesn’t bring in any more cash, it should be retained because “it is morally right that the rich pay higher taxes.”

There’s something almost quaint in seeing political stereotypes confirmed in this way, with the vast majority of Labour supporters seeing the redistributive justice of taxation being as important as its revenue raising function.

The poll perhaps also presents Mr Osborne with an electorally acceptable path to scrapping a policy that clearly goes against all his instincts. If he’s able to convincingly and continuously show that it doesn’t bring in any revenue, he may be able to win the public round. It will however be very difficult to get it past his Coalition partners, but it least it would command some support among the public at large.

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Paul Cook

13:44 |
13 Oct 2011
0

In an ideal world none of us should have to bear a tax that was originally instituted to raise armies in time of war. It should be a duty of parliament to consistently challenge and reduce the tax burden on the general population. In a perfect world we should all pay the same tax propoertional to our earnings, however the problem that needs to be addressed are the earning themselves. While banker bonuses are top of the political agenda, this means controlling profiteering business, whether builders, power companies or supermarkets by placing a control on profits and profiteering and reducing the inflationary pressures these general in the general economy. Shareholder value and executive pay must be the priority targets in reigning in the pay divide and ways need to be found to incentive business and circulation of wealth in the economy by forcing big business to franchise and imposing localism as a method of regenerating local econmies rather than allowing funds to be syphened off in offshore accounts and tax havens, denying both social wealth and tax revenue. In the meantime, the 50p rate of tax needs to stay and perhaps even be extended to those earning over £100,000, including MPs, 'since we are all in it together' and some leadership is certainly required.

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