UK unveils 50% top tax rate

[steven johnson]

Source: BBC

Alistair Darling has said the UK will have to borrow a record £175bn as he admitted the economy faces its worst year since the Second World War.

The chancellor tore up a key New Labour election pledge by unveiling a new 50p tax rate for earnings over £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.

The package would steer the UK through to recovery, he said. The Tories said the economy was in an "utter mess".

Total government debt will double to 79% of GDP by 2013 - the highest level since the Second World War. The annual budget deficit will rise sharply to £175bn for the next two years.


Read more: http://news.bbc.co.uk/2/hi/uk_news/politics/8011321.stm

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Is this a preview of coming attractions in the US?

[Eric J in MN]

1. In US dollars, income over $217,644 will be taxed at 50%. (NT)

NT

[Lydia Leftcoast]

5. I think it's actually a marginal rate, right?

That is, the portion of income OVER about $217,644 will be taxed at 50%.

Or is it a flat rate?

[Eric J in MN]

6. The article says "earnings over" NT

NT

[whopis01]

7. Isn't that exactly what the parent said? n/t

[dipsydoodle]

11. Our rates in the UK are always marginal rates.

ok ?

[No More Bushbots]

2. So I guess its safe to assume

That Americans bitching about their taxes getting raised, won't be moving to the UK?

[vinylsolution]

3. What a great idea!

Imagine the manufactured uproar, etc, etc....

[DLnyc]

4. Yes. Get the taxes from those who have benefited most and who can afford

to pay more. What a radical concept. Oh, wait, that's called a progressive tax. Still a good idea, after all these years!

[burning rain]

8. Heh... Yes we can!

^

[vinylsolution]

9. I'm just waiting for a FOX talking head....

... to proclaim: "Of course, this will dramatically raise Britain's risk of being attacked by terrorists....

Place your bets: will it be Kristol or Krauthammer?

[pattmarty]

10. It'll probably be "smilin Bill", because he's ALWAYS right.

[aquart]

12. Where's ours, daddy? Where's ours?

[Romulox]

13. THIS is Change! nt

[girl gone mad]

14. I think it's a bad move.

It would be one thing if the money was going to fund social programs or if it would be put to use for the common good. The fact is, the UK is blowing the money on bank bailouts.

[Nihil]

15. There's no pleasing some folks is there?

The fact that the UK government has been just as dumb as the US one in
their use of public funds to bail out banks does not negate the fact
that the UK government has decided to extract a fairer amount of tax
from the highest earners (unlike the US one FWIW).

This means that, effectively, it *is* being put to use for the common good
as it is in the big pot for all things (good and bad) but has made that
pot larger (for all things).

What's not to like?

[Romulox]

16. We are ALSO blowing the money on bank bailouts. We're just sending the bill to the kids.

Their way is much more honest.