The Budget also announces:
- from April 2010, an additional rate of income tax of 50 per cent will apply to income over £150,000, and the income tax personal allowance will be restricted for those with income over £100,000;
- from April 2011, tax relief on pensions contributions will be restricted for those with incomes of £150,000 and over, and tapered down until it is 20 per cent;
It’s a start.
The policies I promoted in the TUC’s Missing Billions are getting into the budget.
But they need to go much further to ensure more reliefs and allowances cannot be used to avoid their duty to society.
50% should mean 50% flat on all gross income at £200,000 of income, I suggest.
Then we’ll move to a fairer society.