One of the Daily Telegraph´s leads this morning is that the 45% tax band will cost us money, in the sense that it will raise little or no extra tax and may cost some. It is based on an IFS study.
The treasury says this is bunkum, but even on their figures, it will actually only raise £600 million, leaving the budget short of £1 billion.
None of this is a surprise, as reducing the higher rate tax band to 40% actually raised the tax take.
The problem is of course, that beating the rich is popular, even if it is a really stupid thing to do.
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