Think-tank proposes 50p income tax band

According to the report, the government collects only 37% of its income in national income tax, compared to the EU average of 41.5%, and it proposes that the wealthy assume the extra £3bn in tax a year.

The introduction of a tax band of 50p for incomes of £100,000 a year would not increase the tax burden but redistribute it, and could be used to take 800,000 of the lowest-paid earners out of income tax completely, the organisation said.

Alternatively, it could take 480,000 people out of tax, and move 420,000 of middle-range income earners out of the 40p income tax band.

Evidence for such a strategy is based on an ICM poll which found voters would rather see improved public services, than be offered tax cuts.

The report also called for greater tax-raising powers for the Wales and Northern Ireland Assemblies and local government.


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