50% Income Tax likely to cost Britain £600m pa

“Likely”, the possible cost could be over £1bn.

Loss of Revenue

This chart is from the very recent Institute For Fiscal Studies briefing note that was anticipating a 45% rate (see page 14 for chart):
http://www.ifs.org.uk/bns/bn84.pdf

The most startling aspect when the IFS looked at the sums:

It would appear that the Treasury has not allowed the behavioral response to affect revenues other than income tax receipts.

This is quite extraordinary. A very cheap piece of electioneering by Labour will turn into a very expensive debt for taxpayers.

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