7 Sep, 2011
Top 50p tax rate damages UK, say economists
BBC.co.uk
Twenty high-profile economists have urged the government to drop the top 50p tax rate, which they say is doing "lasting damage" to the UK economy.
In a letter to the Financial Times, they say it should be axed "at the earliest opportunity" to boost growth.
Ministers say the 50p rate is temporary but their policy is to first increase the income tax threshold to £10,000.
Critics said cutting the rate at a time of cuts would be "monstrously unfair" and "phenomenally immoral".
The chancellor has asked HM Revenue and Customs to check whether the 50p rate, introduced as a temporary measure to tackle the deficit under Labour, is an effective means of raising tax revenue.
The 20 signatories to the FT letter include two former members of the Bank of England's Monetary Policy Committee, DeAnne Julius and Sushil Wadhwani.
It is part of a campaign being promoted through PR firm Westbourne, which they say is funded by businesses concerned about the impact of the 50p rate.
'Mobile people'
The economists argue that the tax rate makes is making the UK "less competitive internationally, and making us less attractive as a destination for both foreign investment and talented workers".
They call on the coalition, "to drop the 50p tax at the earliest opportunity as part of a package of measures to stimulate growth".
Full story: http://www.bbc.co.uk/news/business-14810323
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