What is more important in the discussion regarding the 50p tax rate?
1. The perception it creates that the 320,000 earning above £150,000pa are "in this together" and paying their share
2. The actual absolute sum it raises in revenue for Gov't
3. The potential negative impact on entrepreneurs and wealth creators
A rational observer would ignore the perception issue and concentrate on points 2 & 3. If the absolute sum raised (after costs of collection) is negligible and there is an actual / probable negative impact on wealth creators then the rate should be abolished.
If the absolute sum raised is substantial (say > £2bn) and there is little / no evidence of a negative impact on wealth creators - leave it unchanged.
However, in all probability it will be politics that takes precedence as the comment on the BBC 50p Tax Rate story
demonstrates. It would take a brave politician to make a rational decision in the face of such a mob.
Edited 1 time(s). Last edit was 2011:09:22:23:44:53 by Marmora Man.