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Labour’s 50p tax rate – much ado about nothing?

Labour have done it again – completely outsmarted the useless flounderer Cameron and the Tories. First it was Labour’s (undeliverable but electorally powerful) promise to freeze electricity bills. Now it’s their pledge to “squeeze the rich” by imposing a 50p tax rate on those earning more than £150,000. Both promises have been hugely popular with voters.

Meanwhile the Tories and their supporters have been howling in fury claiming that Labour’s 50p tax on incomes over £150,000 will “stifle entrepreneurs” and “wreck the recovery” and “force talent to leave Britain” and “destroy thousands of jobs”. These claims are so totally, transparently and laughably untrue, that they’ve only served to reinforce the view amongst many voters that Labour (in spite of their appalling economic management during their 13 years in power) are the party which represents their interests against the greed and arrogance of the ruling elites.

By their histrionic over-reaction to Balls’s announcement, the idiotic Tories and their equally stupid supporters in the business community have just done the equivalent of jumping up in the air in fury while simultaneously kicking themselves in the balls – an acrobatic feat that is quite difficult and presumably painful if achieved.

As far as I can see, the rise in the top rate of tax from 45p under the Coalition to 50p for incomes over £150,000 under Miliband is so negligible that the Tories should have just shrugged it off. For a start, the 50p tax rate only kicks in on that income which is above £150,000. The first £150,000 of income will still be taxed at 20% for the first £31,865 and then at 40% from £31,866 to £150,000. It’s only on income above £150,000 that the tax rate will rise from the current 45% to 50%. This means that someone earning £200,000 a year will have to pay an extra £2,500 (about £50 a week) in income tax. Big deal?!? And anyway, most people earning over £150,000 will find a way not to pay the increased tax.

But the Tory and business establishment’s furious denunciation of Balls’s political (not economic) promise of this tiny rise in taxes for a tiny proportion of the income of a tiny section of the population has just served to discredit those who howl the most.

When the Tories are so out-of-touch with how most people live and so electorally incompetent, can anything stop Miliband and Balls winning the next election?

3 comments to Labour’s 50p tax rate – much ado about nothing?

  • Paris Claims

    Putting Ed Balls in charge of the economy is the equivalent of putting the Yorkshire Ripper in charge of a woman’s hostel.

  • Taxxedtothemaxxx

    Ha Ha that’s nothing compare to what we pay in NL… but at leased we get something back for it as MIRAS is still going here..

    For 2013, income tax for persons under 65 is as follows:
    For the part of income up to €19,645: 5,85% (plus mandatory Premium National Insurance 31.15%)
    For the part of income between €19,645 and €33,363: 10.85% (plus mandatory Premium National Insurance 31.15%)
    For the part of income between €33,363 and €55,991 : 42%
    On all income over €55,991 : 52%

  • Taxxedtothemaxxx

    Mind you the aforementioned tax brackets are probably whats needed in the UK to get it out of the klag it’s in…

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