01/03/2012

Businesses Urge Govt To Scrap 50p Tax

Over 500 business leaders are demanding the 50p top rate of tax be scrapped in the coming Budget.

The letter, from the owners of 537 small and medium-sized businesses, to the Daily Telegraph urges the removal of the measure.

It said: "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.

"The tax, which is in effect a 58p tax after national insurance is taken into account, puts wealth creators like us in a very awkward position.

"We believe the richest should help the poorest in society. 1% of taxpayers are forecast to contribute nearly 28% of income taxes.

"But penalising high earners through an unfair, politically-motivated tax puts populist politics before sound economics.

"The result is that the 50p tax is set to reduce government income and damage the economy, the public services and charitable giving."

(GK)

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