The 50p tax cut for a "tiny number" of people is not a "priority" in this current climate, says Clegg

 

Comments

[Phil Kean]

Or, I don't care if cutting the 50p rate would help the economy to
recover.
The 50p tax rate is an emotive subject thainflameses the anger of
economically ignorant politicians and voters, and I stand to increase
my popularity with these people if I fight to retain it.
.

[Man in a Shed]

I have a friend who until recently works in the emigration from London business. 50p tax rate kept here very busy.

The colossal bloody minded stupidity of Nick Clegg and his need to appease ignorant left wing Guardian readers is dragging this country down the drain.

Its just envy and spite combined with the standard Lib Dem ignorance of things economic and reality based.

[Openurmindnsee]

I agree with Nick. It's not envy, it's called fairness. As a Tory who actually wants to WIN the next election and not just pander to the base that will mostly vote for us anyway, I believe in helping the majority not the minority. The very people urging for the top tax rate to be axed are the same people who will benefit from the change. I think that's what you call selfish, especially when 90% of us are dealing with services being cut. Am I against cuts? No. Am I against tackling the deficit? No. Am I alone in thinking there are a thousand other/better ways of boosting growth than cutting the top rate of tax? God, I hope not. People already think we've been too nice to the banks with the corp tax so helping the rich should be our last priority right now. I'm all for being more right wing on Europe and Immigration because it's not only right and fair and democratic, but the public WANT us to tackle those issues. Ask Average Joe what he thinks of cutting taxes for the richest. Just see what he says.

[HYUFD]

Cut it once we have sorted the deficit out at the next election, and cut taxes across the board to boost growth, until then, with spending also being cut and the deficit the priority, tax cuts for the likes of bailed out bankers is hardly a priority!

[George Stewart]

If 50p is such a good idea, why not 60p or 80p or maybe 90p, think of the revenue that a 90p rate would generate.

I would like to ask Nick if he supports a 90p rate and if not why not?

Answer the following question.

Tax policy should be utilized to:

A.) Generate the optimum amount of revenue to finance the government. Tax rates across the spectrum should be based on revenue generating capability.

B.) Influence social policy even if higher rates mean less revenue.

[Martin Marprelate- A Man in the Street!]

350,000 is a very insignificant number indeed. If the government cuts this 50% top rate then it will send a totally wrong message to the vast majority of Income Tax payers. Once the Economy recovers then is the time to look at our tax rates with a view to adjustment thereof but NOT now! I never thought I would agree with Clegg but I do on this issue!

[It doesn't add up...]

Yep, we could easily do without any of the tax from those 350,000, couldn't we?

http://ukhousebubble.blogspot.com/2011/09/uk-income-tax-who-pays-how-much.html

They paid £43bn in income tax in 2010.

[John Prendergast]

To put this in persdpective £43Bn is more than the Defence Budget. If topo tax rarte was to drop, Tax Take would go up so instead of £43Bn from this section of wealth creators it would soon be more like £65 Bn.

Dont forgert that in addition to 50P tax, these people pay much more NI etc. Thus they are being taxed at an unproductive 60P to sooth Liberal inadequates, those flat earthers who paradoxically believe in tilted playing fields.

[Mender]

Can cutting taxes for the rich boost the economy? Good question. My view, for what it's worth, is we should put it to the test.

Set a growth target greater than most people than expect. Say that if the rich can deliver, by creating this unexpectedly high growth, they get their 10p extra tax back for that year, and every year after that for which growth is higher than people expected. If cutting taxes can't boost the economy, no tax cut. You can cut taxes for a trial period conditional on making that target if you prefer.

But really it's pretty obvious that it wouldn't work. Right now, anyone with disposable income is saving it, and cutting the taxes of people with the greatest disposable income isn't going to help.

[Cleethorpes Rock]

If we're going to cut taxes, we should cut them for the poorest first. That would also have a bigger impact on the economy as the money is more likely to be spent, and spent locally.

The 50% rate should go, but not while people on low incomes are struggling and not before far more economically damaging taxes have been shelved. That would be political suicide. Then try cutting the 50% tax rate from opposition and see how far you get.

[Martin Marprelate- A Man in the Street!]

I would think that the bulk of worthwhile work done in this country is performed by people who do not and will never reach the 50% tax threshold in their working lives. I fear that this issue has become totemic, a "King Charles' Head" for some on the Econo-Right.

Rather than cutting "Tax at the Top" let us boost a Retail Boom, the only type Britain is likely to enjoy these days by cutting VAT back to 17.5% on a permanent basis and indeed to 15% for say 6 months from December 2011 to June 2012.