Posted: April 13, 2010
Link: http://news.bbc.co.uk/2/hi/business/8604215.stm
As the new tax rate of 50% takes effect here in Britain, many of the country’s top earners will have make contact with their financial advisor to find out just much they will be affected. Yes the over 300,000 top earners in our society will be most affected by this new tax. This may seem a small chunk when you consider the close to 30 million Brits who are registered taxpayers and who pay tax on their income.
The new tax rate will only affect those whose taxable income tops £150,000 annually. This according to government estimates will bring in just over £2.4bn extra to the government coffers within its first year.
Done to boost public finances not everyone has welcomed it. There are those who believe that it will greatly affect entrepreneurial spirit, foreign investment, and business confidence in a very negative way. Some believe that this increase will not bring in what the government expects. In fact the belief is that tax revenues may not increase at all, certainly not in the short term.
Well I am sure there are those among us who will say that it is about time the rich got taxed the way they should. The rich will say that it is unfair and that they are been unfairly targeted. Many will think of leaving and some actually will. If they leave the amount of revenues will be less and that will have serious repercussions for the government and the rest of us. The thing is the new tax is here and we just have to deal with it.
Category: General |