50% tax rate is damaging the economy.

[Waldorf]

The 50p higher rate of income tax is “damaging the economy” and delaying the recovery from recession, more than 500 entrepreneurs and business owners warn today.

In a letter to The Daily Telegraph, the bosses of small and medium sized firms across the country say the levy has meant they have not expanded their firms and taken on more workers.

They accuse George Osborne, the Chancellor, of putting “populist politics before sound economics”. Calling for it to be scrapped, they add that the ongoing imposition of the 50p higher rate of tax has left “wealth creators” in a “very awkward position”.

The intervention is likely to alarm the Government ministers as those who have signed today’s letter represent the “bedrock” of British industry, whose future success is key to the economic recovery. It is the first time that these ordinary business owners have set out the damage caused by the levy.
Public criticism of the 50p rate had been largely limited to the heads of multi-national businesses and international entrepreneurs.

In today’s letter, the 537 businessmen say: “Given the current state of the UK economy, we urge the Chancellor to urgently consider scrapping the top rate of tax in his forthcoming budget.

50p tax rate is damaging economy and delaying recovery from recession, warn 500 business leaders - Telegraph

[DodgyAgent]

The 50p higher rate of income tax is “damaging the economy” and delaying the recovery from recession, more than 500 entrepreneurs and business owners warn today.

In a letter to The Daily Telegraph, the bosses of small and medium sized firms across the country say the levy has meant they have not expanded their firms and taken on more workers.

They accuse George Osborne, the Chancellor, of putting “populist politics before sound economics”. Calling for it to be scrapped, they add that the ongoing imposition of the 50p higher rate of tax has left “wealth creators” in a “very awkward position”.

The intervention is likely to alarm the Government ministers as those who have signed today’s letter represent the “bedrock” of British industry, whose future success is key to the economic recovery. It is the first time that these ordinary business owners have set out the damage caused by the levy.
Public criticism of the 50p rate had been largely limited to the heads of multi-national businesses and international entrepreneurs.

In today’s letter, the 537 businessmen say: “Given the current state of the UK economy, we urge the Chancellor to urgently consider scrapping the top rate of tax in his forthcoming budget.

50p tax rate is damaging economy and delaying recovery from recession, warn 500 business leaders - Telegraph

IT contractors are not affected by this

[lilelvis2000]

Interesting how an American term has made it over the pond so quickly.

IMHO it is the overall level of high taxation that will completely stall the economy. But hey, GO & MK can just keep printing money to pay the debt.

I'm scanning the websites of Oz and NZ for a way in.

[d000hg]

The 50p higher rate of income tax is “damaging the economy” and delaying the recovery from recession, more than 500 entrepreneurs and business owners high earners warn today.

Hardly unbiased...

[DodgyAgent]

Hardly unbiased...

Quite. Biased towards business - we dont want that do we? They should have asked Polly Toynbee for her opinion.

[d000hg]

No biased because they are personally affected by the 50% tax. Few entrepreneurs are hiring people on 100k+ salaries but they might be earning that themselves.

It'd be like asking contractors if we should have to pay employer's NI - it's in our self-interest to say no.

[Arturo Bassick]

I find some of the arguments a little difficult to understand.
They say they are not encouraged to invest in their businesses due to the 50p tax rate.
Surely by investing in the business they are reducing their own incomes and therefore lowering their tax bill? It is possible to expand a business to make it more secure, not purely for profit.

[lilelvis2000]

No biased because they are personally affected by the 50% tax. Few entrepreneurs are hiring people on 100k+ salaries but they might be earning that themselves.

It'd be like asking contractors if we should have to pay employer's NI - it's in our self-interest to say no.

Most of them would have very good accountants anyway and probably are just below the threshold on their "income".

'course it would be too much to ask for the lower ranks to have their tax reduced wouldn't it...naahhh cuz' we pay for everything.

[DodgyAgent]

No biased because they are personally affected by the 50% tax. Few entrepreneurs are hiring people on 100k+ salaries but they might be earning that themselves.

It'd be like asking contractors if we should have to pay employer's NI - it's in our self-interest to say no.

You are quite right of course that vested interests are prevailing here. It does'nt bother me as an employer because I dont pay tax at that rate even if I earn that amount of money and nor do/would you.

[Arturo Bassick]

Most of them would have very good accountants anyway and probably are just below the threshold on their "income".

'course it would be too much to ask for the lower ranks to have their tax reduced wouldn't it...naahhh cuz' we pay for everything.

It never seems to occur to them to spread the wealth either. Why not reduce their own income by paying their staff more, thus increasing staff loyalty?