The Tory government is considering lowering the top rate of tax for Britain’s super-rich, it has been reported.
The move would see the top rate of tax being lowered from 45p to 40p in the pound (£), while hammering low-income families with £12bn in welfare cuts.
Former Tory Chancellor, Lord Lawson, has urged George Osborne to reduce the tax burden on top-rate tax payers in the ’emergency budget’ next month (July).
George Osborne has indicated during Treasury meetings that he may go ahead with the plan. It would encourage more businesses to invest in the UK, says Lord Lawson.
I’m always a little wary of anything with the Taxpayer’s Alliance name on it, always regarding them as a Tory front group… are they starting to bite the hand that (alledgedly) feeds them ?
A report just published by the Taxpayer’s Alliance has found that the poorest 10% of households in the UK pay 47% of their gross income in direct and indirect taxes.
Analysis of Office for National Statistics figures for 2012-13 by the organisation shows that VAT accounts for 13.9% of the gross income of the bottom 10%, whose total gross income was £9,743 (inclusive of benefits), and 7.2% is accounted for in council tax.
Combined direct and indirect taxation accounted for £4611 of gross income, leaving £5132.
In contrast, the wealthiest 10% of households paid 35% of their gross income (including benefits) in taxation, with income tax accounting for 19.1%.
Jonathan Isaby, Chief Executive of the TaxPayers’ Alliance, says in the report “This analysis shows how pernicious our tax burden has become. Not only does the tax system hit the poorest hardest, but those at the top are already contributing far…
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