Osborne: cutting top rate has saved £8bn
It is well known from many economic studies that cutting tax rates raises the total amount of tax revenues because people don"t bother to try to avoid tax, work harder to earn more etc.
It is therefore no surprise that George Osborne has revealed the reduction in the top rate of income tax has raised an additional £8bn for the Exchequer. Speaking in the Commons on Tuesday, Mr Osborne said official figures confirmed that top taxpayers had paid more since the rate was cut. “Numbers from HMRC, which for the first time show the income tax data for 2013-14 when the 50p rate was reduced to 45p, show that there was an £8bn increase in revenues from additional-rate taxpayers,” he said.
Time to reduce the 20% and 40% rates too Mr Osborne!!