Comment: Should top-rate tax be axed?
The Tories are showing their true colours now as it looks almost certain they will be reducing of the 50p tax rate when the budget is announced on Thursday.
Reducing the 50p tax rate, which currently kicks in at £150,000 a year, means footballers and bankers will get a few extra thousand a week net, while families struggle with reduced support from government and the public sector continues to whither. If we need to pay off debt why are taxes being reduced for those who can most afford to pay them?
When it was first imposed in 2010, 300,000 people were earning enough to be in the higher bracket, now that has gone up to around 310,000, despite the deepest recession since the 1930s.
Inequalty in this country is getting out of control. The number of billionaires actually increased from 53 to 73 between 2010 and 2011, and who would bet against that going up again this year.
That increase is against a backdrop of increasing unemployment and an increase in the minimum wage of 11p, or 1.8%, with inflation currently at 3.6%. Fairness seems to have gone out of the window.
And now the government wants to give the lucky few even more money. Apparently there will be some measures to take money from richer folk as well, although what those are remains to be seen. As a message to send out cutting the 50p rate is horrendous.
Some Jesmond residents may well be in the 50p tax bracket. My question to you is: do you think it’s fair that you will now have a few extra pounds in your pocket, while families earning around the £40,000 mark are looking at cuts to child support?