Andrew Mobbs (mobbsy) wrote,
Andrew Mobbs
mobbsy

Coincidentally, the Guardian has a CiF post on the 50p tax rate, commenting on its popularity with voters.

From what I read this morning, it's rather debatable how much the 50p rate is likely to raise in tax revenue, and it is plausible that it would even cause a net loss. However, I suspect that many people would support taxing the rich more, even if it cost them money.

The Treasury estimate that the 50% rate will gain £2.4 billion, the IFS forecasts suggest it could be as bad as a £800 million cost. The Taxpayers Alliance claim it could be as bad as a £4.5 billion cost (though I think that very unlikely). In context, overall government receipts are £548 billion (after the June budget), so these figures are a fraction of 1% of overall income either way. Taxing the rich a bit more, or not, isn't going to either save the country from ruin or give us a land of plenty. On the other hand, the difference between IFS worst-case and treasury could pay for the whole Legal Aid program (as it was before yesterday), so it isn't completely without real relevance.

So, a poll, within the bounds of above expectations of the amount raised or cost being relatively small:
Poll #1645240 50p tax for people earning > £150,000

Would you support 50p income tax rate for the rich if it raised money overall? (i.e. increased income or services for everybody in the country).

Yes
21(100.0%)
No
0(0.0%)

Would you support 50p income tax rate for the rich if it cost money overall? (i.e. reduced income or services for everybody in the country).

Yes
3(17.6%)
No
14(82.4%)
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