George Osborne accused of egging on 50p rebels

March 2nd, 2012

FAKE NEWS for the Zionist agenda

By
Tim Shipman and Becky Barrow

Last updated at 8:21 AM on 2nd March 2012

Senior Liberal Democrats accused the Chancellor of ‘whipping up’ opposition to the 50p tax rate yesterday as business leaders warned it is causing ‘real economic damage’.

The row erupted after George Osborne was accused of encouraging 500 businessmen to sign a letter calling for the abolition of the top rate.

LibDems said there was no prospect of ditching the 50p rate unless the Tories replace it with a mansion tax.

George Osborne, right, is believed to be encouraging business leaders to sign the petition

A senior LibDem said the letter, signed by some of Britain’s leading small businessmen, ‘had all the hallmarks of a Tory Treasury operation’ – effectively accusing the Chancellor of encouraging lobbying against the tax.

‘They’ve been whipping this up for some time,’ he said.

Another source pointed out the Chancellor used the Davos economic summit in January to say: ‘If the business community wants to make an argument against it then you should go and make that argument.’

But former LibDem Treasury spokesman Lord Oakeshott, who is close to Business Secretary Vince Cable, made clear the party won’t countenance a rate cut in this month’s Budget without major concessions.

He said: ‘The Treasury can egg on
opponents of the 50p rate all it likes but no LibDem will stomach a
straight tax cut for the rich in these hard times.

‘What could work for our coalition is
shifting the tax burden from income to wealth so the Chancellor can cut
higher income tax rates with our mansion tax as the £2million quid pro
quo.’

‘AXE THIS DAMAGING POLICY’

The 50p tax rate was meant to raise £2.5billion a year but could end up losing money for the Government, according to a report by the Centre for Economics and Business Research.

According to the think-tank, the rate is ‘popular’ among voters, but also a short-sighted and damaging policy which should be scrapped.

The CEBR report warns it could lead to ‘a loss of tax revenue for the Government’ in the long-term and could see high-earners leaving the country or resorting to tax evasion.

Entitled The 50p Tax: Good Intentions, Bad Outcomes, the report states: ‘Britain has lost its place as an attractive, low-tax jurisdiction that welcomes job creators and celebrates financial success.

‘Once one of the most competitive tax regimes in the world, the British system is now one of the most punitive.’

The onslaught against the 50p rate continued yesterday when business bosses said maintaining the top rate would create ‘an exodus of entrepreneurs’.

Simon Walker, director general of the Institute of Directors, said: ‘This letter is the voice of people who actually run businesses, create jobs and make sure there are goods and services available.

‘These people know what works and what damages the economy. They are clear the 50p rate does real economic damage.’

Introduced in April 2010 by the former Labour government, the tax must be paid by anybody who earns more than £150,000.

Mr Walker said the tax rate also ‘does nothing for the Exchequer’ as many of the well-paid find clever ways to avoid paying it.

Tory MP David Ruffley, a member of the Treasury select committee, said the tax should be scrapped immediately to prevent it becoming ‘a political football’ at the 2015 election.

In an article for the Conservative Home website, he said: ‘If the Chancellor leaves it that late, the 50p rate will have done still more damage to the economy.’

Official figures from HM Revenue and Customs suggest the 50p tax rate has been a flop. In January the take from self-assessment tax returns collapsed by more than £500million, compared with the same month in 2011.

A Treasury spokesman said: ‘We have said we regard 50p as temporary and have asked HMRC to report on its effectiveness. We have not set out a timetable for any change in policy.’

Here’s what other readers have said. Why not add your thoughts,
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– RossD89, Burnley, Lancashire, 2/3/2012 9:09 Wrote
“I have never seen somebody look as uncomfortable in their own skin as Osborne does in this photo” Thanks for that Ross, had to have another look. looks like some kind man who would give sweets away. Reminds me of a previous chancellor the tories had

– I’m alright jack-but, Wakefield W/Yorkshire, 02/3/2012 09:21

Our whole tax system is a mess. We should scrap every single piece of tax law and introduce a simpler, fairer and understandable system. There should be no tax breaks for special interests. You earn income in this country and you pay the tax.

– David, Orkney UK.(just), 02/3/2012 09:19

If this is true? It is time for MR Osborne to go. The Petrol companies and the Government is Ripping us off and nothing is being done about it. I personally feel the Tax should go up to 75% for the people who earn, or should i say get more than 500 thousand a year. Roll on the next Election.

– stan white, leeds, 02/3/2012 09:18

The ongoing whining from the left is always “the wealthier should pay more”
Now I’m no financial genius but surely 25% of £100,000 is more than 25% of £10,000.
The left actually want to punish success with penalties and reward failure, courtesy
of the welfare system!

– jamie , Esher, Surrey, 02/3/2012 09:10

I have never seen somebody look as uncomfortable in their own skin as Osborne does in this photo.

– RossD89, Burnley, Lancashire, 02/3/2012 09:09

How much money does one man need to live a happy and contented life?
– faithinothers, london, 2/3/2012 9:00
———————————————————————
Money, as we all know, does not buy a happy and contented life, let alone love. However, in sufficiently large quantities it usually gets you are equitiable interest – in answer to the question, one really needs at least £500,000 pa (net of tax) to live with any dignity
All the best
Dave

– Dave, Chorleywood, 02/3/2012 09:05

How much money does one man need to live a happy and contented life?

– faithinothers, london, 02/3/2012 09:00

Government always faffs around and makes thing complicated. There has been outrage recently at the benefit limit and the fact that benefits are so high, above the minimum wage, average UK earnings, and not taxable. Why don’t they make the benefit cap, the minimum wage and the zero rate tax code the same amount (say £12k)? This would mean that people on benefits would not get more than they could if they were eaning and that none of them would pay tax, which given the level of income seems immoral.

– Mark, Hertford, 02/3/2012 09:00

For the record how many of these Lib Dem MPs have ever done real jobs? – John, Indonesia, 02/3/2012 05:13—like Cameron and Osborne then?
– Foot own, Shot in!, 02/3/2012 07:17
You certainly have shot yourself in the foot with a foolish post!
Cameron and Osborne are pro-business – they get the issues, and they are trying to keep Britain attractive to wealth producing employers.
The Lib Dems are trying to drive businesses away from the Britain with their ‘soak the rich’ mentality, and punitive tax demands, so it is appropriate to ask where their business experience comes from.

– Realist, At the end of tolerance, 02/3/2012 08:54

1st grade maths- (alimac, berkshire, 2/3/2012 7:21) wrote-in response to( Coiled Spring, Oldham, 2/3/2012 0:54 ) “That’s because it will actually be costing them £25,000 a year!….” Maths, it would appear not to be your strong point.

– I’m alright jack-but, Wakefield W/Yorkshire, 02/3/2012 08:52

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