Treasury written question – answered at on 19 October 2012.
To ask the Chancellor of the Exchequer if he will estimate the cost to the Exchequer of lowering the 40 per cent income tax band to (a) 30, (b) 38, (c) 37, (d) 36, (e) 35, (f) 34, (g) 33, (h) 32, (i) 31 and (j) 30 per cent.
The Exchequer costs of lowering the higher rate of income tax can be approximated from Table 1.6 ‘Direct effects of illustrative tax changes’, available on the HM Revenue and Custom's website at:
http://www.hmrc.gov.uk/stats/tax_expenditures/table1-6.pdf
Where appropriate, costs include estimates of the direct behavioural responses from marginal rate changes. For very large rate changes these responses are more uncertain.
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