Tech & Biz

Tax Rate Rises as UK Faces Record Debt

by Jordan Yerman | April 22, 2009 at 08:27 am

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UK Chancellor of the Exchequer Alistair Darling, in revealing the new budget, has announced a new top tax rate of 50% for those earning £150,000 or more. I recall the 50p tax rate already exisitng, but affecting those wiht much higher incomes. (THis ddin't come out of the blue- the 50p tax rate for that income level was suggested in 2006 as well)

Also, the British Government will have to borrow £175 billion as it faces its worst economic year since WWII.

The opposition-- and the public-- is skeptical of both the chances of this package's success and the ability of the current government to handle the problem.

Another issue here is brain drain: what would be the incentive for those who work at the top of their field to stick around in the UK? Darling has basically lowered the Mick-Jagger-tax-exile bar to include a far broader segment of the British population.

If you'd like to read the full budget report, you can download it here (pdf).

The chancellor tore up a key New Labour election pledge by unveiling a new 50p top tax rate for those on £150,000.

He also cut future spending plans in a Budget which added 2p on fuel, 1p on a pint of beer and 7p on cigarettes.

Conservative leader David Cameron says that Britain "cannot afford five more years of Labour":

He said: "Look at the other taxes. Look at the tax on beer. That's going to hit every drinker in every pub. Look at the tax on petrol. They're reintroducing the fuel duty escalator. That is going to hit everyone who has to drive to work.

"These people aren't rich. These people have to work hard and they are going to pay the price for Labour's failings.

Also see:
UK budget may cost Scotland jobs and funding
Spring budget coming soon

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Mrsmission4

at 09:20 on April 24th, 2009

I'm still sitting here with my head in my hands......this country is doomed. My government are an embarassment ...... we'll all be exercising our democratic right though thats for sure.....only one more year of these morons. But the legacy they will leave will take many many years to recover from.