Income tax rate: Balls takes the gloves off

Ed Balls’ announcement that Labour will restore the 50p rate on those earning more than £150,000 is a “politically savvy manoeuvre”, but it is wrong economically, says The Independent on Sunday.

True, raising taxes on the rich is electorally popular: 60% of voters support it, according to a Survation/Mail on Sunday poll. But the reason the government reduced the top rate from 50% to 45% in 2012 was that, according to HMRC figures, the yield was “almost statistically insignificant”.

This view is supported by the Institute of Fiscal Studies (IFS), which says “the best evidence we have still suggests [...]

MoneyWeek magazine

Latest issue:

Magazine cover
Don't be spooked by Putin

Take a punt on eastern Europe

The UK's best-selling financial magazine. Take a FREE trial today.
Claim 4 FREE Issues
Shale gas 'fracking' promises to transform Britain's energy market. Find out what it is, what it means, and how to invest.

Which investment platform?

When it comes to buying shares and funds, there are several investment platforms and brokers to choose from. They all offer various fee structures to suit individual investing habits.
Find out which one is best for you.