House of Lords written question – answered on 11th March 2013.
Lord Ashcroft
Conservative
To ask Her Majesty's Government what is their assessment of the level of the top rate of income tax that would deliver the maximum return to the Exchequer.
Lord Deighton
The Commercial Secretary to the Treasury
Page 51 of The Exchequer Effect of the 50% Additional Rate of Income Tax1 report published by HM Revenue and Customs alongside Budget 2012, sets out the assessment of the level of the top rate of income tax that would deliver the maximum return to the Exchequer.
The report states that the estimated revenue-maximising rate of tax for those with incomes over £150,000 is between 45% and 50%, and that the Exchequer impact of varying the rate close to this level is relatively low.
1 http://www.hmrc.gov.uk/budget2012/excheq-income-tax-2042.pdf
Yes1 person thinks so
No1 person thinks not
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