In reply to BnB:
> Being only a small proportion, however, how are you going to collect much tax from them, even at punitive levels and assuming they don't alter their behaviour to combat the tax hike?!
They are a small proportion, but 60% of the income tax revenue comes from the top 10%.
So it seems to me there is quite a bit of margin there, especially given that their overall tax rate is actually pretty low.
Nobody is talking about punitive levels, 50% is more than reasonable. I paid the higher rate for many years I don't think I would have changed behaviour at all, tbh, I probably wouldn't have bothered, but that's just me.
Evidence suggest it woukd probably raise quite a bit of money, but nothing fantastic. At the moment the UK is probably slightly to the left of the laffer curve, labour could take it slightly to the right, who cares !
The reality is that whether people pay 45 or 50 it will make very little difference.
All these discussions on tax are just a distraction IMO, just minor adjustments, mostly based on nothing more than ideology, when you look at the labour plans, and the Tory plans, they are both dishonest and missing the point.
The real point is very simple, with the demography as it is, there are only two options to balance the budget in the long term :
1) Further very harsh cuts to public services, (which are at breaking point, or passed it)
2) Maintain high level of working age immigration
Now, the tories want to reduce immigration drastically, which means they'll have to go with very harsh cuts to public services, and they are lying about it.
Labour, worse, they also now want to reduce immigration, but also don't want to do the harsh cuts, in fact they want to reverse them. Their proposed increase in taxes will not be enough and they'll have to increase borrowing.
So here you go, the British people are being presented with two totally unrealistic, unworkable options.
Post edited at 17:20