Much of yesterday’s budget was as expected with Chancellor Alistair Darling mostly announcing where he planned to make savings post the Credit Crunch government borrowings. As usual smokers, drinkers and motorists will be asked to pay more like normal.
One announcement that did get some headlines was that the Chancellor will introduce a new 50% tax rate for Britain’s highest earners. The planned change comes into effect from April 2010 and will affect anyone earning more than £150,000 per year. This is approx only 1% of UK taxpayers which we think is the Labour Government making a political statement that they are the party on the side of the Working Man with approx a year to go before the next General Election.
The Conservative party reacted by saying they would not seek to oppose the new highest rate, again playing politics so that the Government couldn’t accuse them of being the party of the rich.
The MoneyTalks blog is not politically biased and we wish only to comment on money and finance related issues but in our opinion a 50% tax rate is unfair. Why?
Firstly let’s start by making it clear that nobody at Loans2you earns 150K p annum or anything like it, so it’s not personal. No a 50% tax rate is unfair because those people who have achieved an earning level of more than £150,000 are the business leaders and entrepreneurs the UK needs, more than ever in time of recession. 40% was already enough to be taking, why does the UK Government and opposition Conservative party wish to punish the most successful people in the Country? It’s totally the wrong message in our opinion, as always we will welcome yours, the Loans2you team, www.loans2you.net
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