Looks like Blair got out just in time....
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It wont be 51% because of the thresholds and the fact you use basic rate for the 1st £xxxx. Additionally you only pay 1% rather than 11%, so it will only ever be a 41% tax.
It will be a true 31% tax for basic earners though when NI and IT are alligned next year.
To be fair it isn't that bad in comparisons to some countries, (Norway, Holland etc)
A difference of 10% if you are a high earner , ie football player on £500,000pa isn't that bad. He'll only ever pay 41%, compared to Joe Bloggs on average wage paying 31%
It will be a true 31% tax for basic earners though when NI and IT are alligned next year.
To be fair it isn't that bad in comparisons to some countries, (Norway, Holland etc)
A difference of 10% if you are a high earner , ie football player on £500,000pa isn't that bad. He'll only ever pay 41%, compared to Joe Bloggs on average wage paying 31%
Last edited by Mitchy260; Feb 5, 2008 at 10:28 AM.
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