Economists argue against 50% Tax on the Rich

Twenty Leading Economists have written to the government questioning the 50% tax for those earning over £150 000 per year.

They state the following:

We are concerned that Britain's 50p income tax rate 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.

"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."

"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."

The Channel 4 news piece is here

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