THE TOP RATE of income tax should be lowered from 45% to 40%, according to mayor of London Boris Johnson.
Speaking at the Conservative Party conference, Johnson intimated he would like to go further than George Osborne's decision to lower the top rate from 50p to 45p in the last Budget, a move that will come into force in April next year.
The current state of affairs, he said cited in the Telegraph, was "uncompetitive", adding "that really needs to be addressed".
He acknowledged, however, that his suggestion comes at "a difficult time", accepting that "people won't like to hear it".
In spite of giving the prime minister his backing, Johnson openly disagreed with David Cameron, accepting that he may be unappreciative of his public call for a new tax rate in the face of criticism from Labour on the issue.
It seems to be common Tory etiquette to propose a policy change with no research whatsoever into how a change will impact society. A cut from 45p to 40p will sound great to a higher rate tax payer (ie Tory Voters) but the question that needs to be answered is whether that change will impact society as a whole, large enough to justify this tax break for the rich? I'd like to see some credible independent research before any decisions are made. Although I suspect Boris was simply stating Osborne's plan for the next budget! I am not against a cut in tax for the wealthiest, but I feel that we need to be putting money into the pockets of the masses and not the few - How does the UK economy benefit if a higher rate tax payer receives a tax break of £20,000 (for example) and spends that money at their holiday home in the south of France - UK basic rate tax payers with an extra £500-£1000 are more likely to spend it locally - thus generating a flow of economic capital throughout our economy, lowering unemployment as demand increases and reducing the burden on the welfare system. All statements which the Tories have expresses as their desire at the conference this week - It's just a shame that their policies do not mirror their statements.
Posted by: Stephen, 11 Oct 2012 | 09:06
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