...a blog by Richard Flowers  Wednesday, September 07, 2011  Day
3902: Let's Tackle Britain's highest tax rate… no, it's not the
50p band   The Conservatories want to abolish the 50% higher
rate tax band.  Master Gideon and Mayor Bojo want it, because
tax cuts make Tories feel all MANLY and POWERFUL, and tax cuts
for RICH PEOPLE will make them POPULAR with all their RICH
FRIENDS.  Now twenty "high-profile economists" (or "rich
people") have written in to say they think it should go too
because it makes Britain LOOK like a high tax country (that's
LOOK like, not actually BE a high tax country, 'cos we're not).
But 50% ISN'T the highest rate at which people can pay tax on
their income. Some people – they're still PRETTY WELL-OFF people
actually but they're NOT the richest earners, so, you know, Mr
Potato Ed would still call them part of the "squeezed middle" –
pay a HIGHER rate of tax only it's a STEALTH TAX and it's down
to the "withdrawal of personal allowance".  In the UK, if you
earn more than £150,000 the