I wish that someone would explain to me how they get to these conclusions…
Most of the entrepreneurs that I know probably don’t pay themselves enough to pay this tax, yet on paper they are millionaires - the reason: they are too busy investing in their businesses to be “earning” that much… and it is by investing in new business that they reduce their tax bills.
I would love to understand, out of the 308,000 people that are quoted to pay the 50p tax rate, how many are REALLY investing money back into new ventures and how many are just taking the money off the table?
Wouldn’t it be more of an incentive to invest your income in a business if you are avoiding a high tax rate by doing so? Am I really that naive?
Note: I am not commenting on the moral obligation that people may or may not have during these tough times - although I might say that Warren Buffet is leading the way on this topic ;)