Disincentivising high incomes

A 50% tax rate was introduced to the UK in April 2010, to apply to all earnings over £150,000.  This high tax rate was devised to raise additional income for the treasury by increasing the payments made by the highest earners, therefore increasing the Robin Hood effect of income tax.

However, it is likely that this higher tax rate is unlikely to increase tax receipts to the degree that the government would like.  Continue reading “Disincentivising high incomes”