{"id":14393,"date":"2012-03-01T08:27:09","date_gmt":"2012-03-01T08:27:09","guid":{"rendered":"http:\/\/www.taxresearch.org.uk\/Blog\/?p=14393"},"modified":"2012-03-01T08:27:09","modified_gmt":"2012-03-01T08:27:09","slug":"that-50-tax-rate","status":"publish","type":"post","link":"https:\/\/www.taxresearch.org.uk\/Blog\/2012\/03\/01\/that-50-tax-rate\/","title":{"rendered":"That 50% tax rate"},"content":{"rendered":"<p>I've <a href=\"http:\/\/www.telegraph.co.uk\/comment\/letters\/9114040\/Cut-the-50p-tax-rate-to-help-boost-business-and-encourage-entrepreneurs.html\" target=\"_blank\">looked at the letter in the Telegraph<\/a> demanding abolition of the 50p tax rate for those\u00a0earning\u00a0more than \u00a3150,000 a year\u00a0because\u00a0that will, the 537 who signed it say,\u00a0increase\u00a0entrepreneurialism in the UK and so jobs.<\/p>\n<p>I've scanned down the list. I've looked at their company names. Over 90% are from limited companies.<\/p>\n<p>Most limited\u00a0companies\u00a0pay tax at 20% in the UK. The effective tax rate of those who supposedly pay the large company rate is little above 20%.<\/p>\n<p>The UK has its entrepreneurial tax break: it's the justification given for providing such low rates of tax to these companies. So all\u00a0these\u00a0people\u00a0have all the tax breaks they need to preserve and\u00a0reinvest\u00a0their profits in their businesses. The 50p tax rate has nothing\u00a0whatsoever\u00a0to do with that issue therefore. And there is a\u00a0second\u00a0tax break for\u00a0entrepreneurs\u00a0- millions of capital gains allowed to them at a tax rate of just 10% when they sell their enterprises. The tax\u00a0system\u00a0could not be more\u00a0generous\u00a0to job creation.<\/p>\n<p>In\u00a0that\u00a0case this letter is all about something else: let's call it \u00a0greed. <a href=\"The 50p tax rate \u2014 let\u2019s shatter the myths behind the Telegraph\u2019s letter\" target=\"_blank\">As I've argued here<\/a>.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>I&#8217;ve looked at the letter in the Telegraph demanding abolition of the 50p tax rate for those\u00a0earning\u00a0more than \u00a3150,000 a year\u00a0because\u00a0that will, the 537 who<br \/><a class=\"moretag\" href=\"https:\/\/www.taxresearch.org.uk\/Blog\/2012\/03\/01\/that-50-tax-rate\/\"><em> Read the full article&#8230;<\/em><\/a><\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[97],"tags":[],"class_list":["post-14393","post","type-post","status-publish","format-standard","hentry","category-tax-justice"],"_links":{"self":[{"href":"https:\/\/www.taxresearch.org.uk\/Blog\/wp-json\/wp\/v2\/posts\/14393","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.taxresearch.org.uk\/Blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.taxresearch.org.uk\/Blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.taxresearch.org.uk\/Blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.taxresearch.org.uk\/Blog\/wp-json\/wp\/v2\/comments?post=14393"}],"version-history":[{"count":0,"href":"https:\/\/www.taxresearch.org.uk\/Blog\/wp-json\/wp\/v2\/posts\/14393\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.taxresearch.org.uk\/Blog\/wp-json\/wp\/v2\/media?parent=14393"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.taxresearch.org.uk\/Blog\/wp-json\/wp\/v2\/categories?post=14393"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.taxresearch.org.uk\/Blog\/wp-json\/wp\/v2\/tags?post=14393"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}