Tuesday, December 27, 2011

group of economists indicates that the maximum rate of tax is done "lasting damage to the UK economy", but Osborne said he does not intend to reconsider the plans Tax and spending

chancellor, George Osborne, is under pressure after a group of economists called for the rate of 50 cents higher churn UK income tax "as soon as possible" to stimulate growth because new fears that the UK sliding into a double dip recession.

Osborne said Tuesday that the coalition did not intend to re-think their taxes and spending, but admitted that the long-term damage to the economy caused by the contraction of credit been forced to revise its estimates downward for growth that were already low.

In a speech to the City, the chancellor insisted that the government has not hesitated in its approach to fiscal austerity and said that early action to reduce the deficit in Britain had been "ahead of the curve" and in the control of its economy in the future.

But a group of 20 people from senior business experts signed a letter in the Financial Times on Wednesday to express concern at the highest tax rate in Britain is "lasting damage the UK economy. "

The appeal was rejected by Alistair Darling, the former foreign minister revealed that the rate of 50 cents in its 2009 budget, which said that the elimination by the end of the crisis bank would be "grossly unfair".

The letter from economists, who include Cambridge University academic Bob Rowthorn and former members of the Bank of England monetary policy committee and Sushil Wadhwani Julius Deanne said that the maximum rate by the previous Labour government, applicable to higher income on an income of over £ 150,000, "punished" entrepreneurship.

They called for a return to a "tax system internationally competitive" to stimulate the faltering economy.

"We are concerned about the tax income of 50 cents UK is lasting damage to the UK economy," they write. "It happens in the UK one of the highest personal tax regimes in the industrialized world, making it less internationally competitive and makes us less attractive as a destination for foreign investment and talented workers.

"It punishes the creation of wealth through taxation of entrepreneurs and businessmen marginal tax rate of over 50% once national insurance contributions are added in. This is particularly damaging when the UK needs to create new businesses in new industries.

Now a backbencher, Darling said he would not rule out the elimination of taxes in the long run, it is recommended to increase the personal allowances for people paying basic rate of taxes, which are "really in a hurry right now," instead of reducing the rate of 50 cents.

"It must remain in place until we overcome the crisis. It would be very unfair to eliminate it," said the former minister of foreign affairs. "In the long term, you should keep their tax rates internationally competitive, which means something like the rate of trip we used to have. To withdraw now would be a gross injustice. If you do not pay taxes more than poor people will pay. "

But one of the authors of the letter, FT has many hedge funds have been transferred to Switzerland and urged the government to act "as soon as possible."
Jules told the Today program on BBC Radio 4: "By increasing marginal rates on a small number of highly mobile end up not collecting the tax was expected

Find best price for : --George----Osborne----Lloyds--


Blog Archive