[W]e are concerned that Britain’s 50p income tax is doing lasting damage to the UK economy. It gives the UK one of the highest personal tax regimes in the industrialised world, making it less competitive internationally and making us less attractive as a destination for both foreign investment and talented workers.Sensible advice, but too conservative for the U.K.'s Conservative/Liberal Democrat coalition government--they've already rejected it.
The UK has already slipped from second to fourth place as a destination for inward investment. It punishes wealth creation by imposing on entrepreneurs and business people a marginal tax rate in excess of 50 per cent once national insurance contributions are added in. This is particularly damaging when the UK needs to create new businesses in new industries and promote growth by small companies, which can grow fast. . .
We call on the government to drop the 50p tax at the earliest opportunity as part of a package of measures to stimulate growth. Only by returning to an internationally competitive tax regime will Britain enjoy long-term sustainable economic growth.
Tuesday, September 13, 2011
Maybe There Won't Always Be an England
The debate about high tax rates for the rich isn't confined to America. England already taxes earnings over £150,000 (about $240,000) at 50 percent. How's that worked out? Well, 20 "high-profile" economists signed a letter printed in last week's Financial Times: