The Treasury has admitted that it is having to “significantly reduce” its forecast of tax receipts from the expected income from the new 50p tax rate. This is because of the rather obvious ability to avoid paying with creative accountancy.
The problem is that the treasury were warned that this tax would be completely ineffective, and that it was only designed as part of Gordon Brown’s class war. It was a political decision to introduce it, not an economic one. Again, despite this warning, they wouldn’t listen. Perhaps if the Treasury would start making truly economic decision and not political ones, the economy wouldn’t be in half the mess that Labour have created,
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